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Proforma Invoices

Proforma Invoices

Lekha’s Proforma Invoices module allows you to create and manage preliminary quotations with ease—perfect for formalizing pricing details before generating final tax invoices. With customizable fields like customer selection, payment terms, billing and shipping addresses, order items, and tax breakdowns, you can issue professional-looking proforma invoices in just a few clicks.

Each entry supports reference numbers, due dates, and line-level item specifications, enabling you to track commitments and maintain documentation for client review, internal planning, or order negotiation. The system ensures accuracy, auditability, and faster conversion from quote to sale.

Listing Proforma Invoices

The proforma invoices list provides a comprehensive view of all your quotations with powerful filtering and management options.

Default View

  • Proforma invoices are listed by creation time in descending order (newest first)
  • Each row displays key information: invoice number, customer, date, due date, state, and total amount
  • Click on any row to view detailed information for that proforma invoice

Sorting Options

You can sort the list by clicking on column headers:

  • ProForma Invoice Number - Alphanumeric sorting
  • Reference - Reference number sorting
  • Order Date - Date-based sorting
  • Due Date - Payment due date sorting
  • State - Status-based sorting (Draft, Issued, etc.)
  • Total Amount - Monetary value sorting

Filtering by State

Use the state filter to view specific types of proforma invoices:

  • Draft - Invoices still being prepared
  • Issued - Finalized and sent to customers
  • Accepted - Customer accepted the quotation
  • Rejected - Customer declined the quotation
  • Expired - Past due date without response

Available Actions

Individual Actions:

  • View Details - Click on invoice row to see complete information
  • Send Email - Email proforma invoice directly to customer
  • Print - Generate PDF for individual invoice

Bulk Actions:

  • Bulk Printing - Print multiple proforma invoices at once

Creating a New Proforma Invoice

Creating proforma invoices helps formalize quotations before converting them to actual sales orders or invoices.

Step 1: Access Proforma Invoices

  1. Navigate to Sales in the main menu
  2. Click on Proforma Invoices from the submenu
  3. Click the "+ New" button

Step 2: Basic Information

Customer (Required)

  • Select customer from the dropdown
  • Start typing to search for existing customers
  • Customer selection affects currency and tax calculations

Customer Currency (Read-only)

  • Automatically displays when customer is selected
  • Shows the customer’s default currency
  • Cannot be modified directly

Currency Exchange Rate (Required for foreign customers)

  • Enter exchange rate when customer’s country differs from organization country
  • Used for currency conversion calculations
  • Updated exchange rates ensure accurate pricing

Supply Destination (Optional)

  • Select state/place of supply for tax calculation
  • Only appears when customer’s country matches organization country
  • Affects GST calculations and compliance

Payment Terms (Optional)

  • Select or enter payment terms
  • Examples: “Net 30”, “Due on Receipt”, “45 Days”
  • Helps set customer expectations

Finance Account (Optional but recommended)

  • Select appropriate finance account for the transaction
  • Used for accounting and financial reporting
  • Helps organize transactions by account type

ProForma Invoice Number (Required)

  • Auto-generated by system or manually entered
  • Must be unique within the system
  • Used for tracking and reference

Reference (Optional)

  • Enter any reference number or text
  • Helps link to customer’s purchase orders or internal references
  • Maximum flexibility for tracking needs

Date (Required)

  • Select the invoice date
  • Defaults to current date
  • Can be adjusted as needed

Due Date (Optional)

  • Select payment due date
  • Helps track quotation validity period
  • Used for follow-up scheduling

Step 3: Billing Address

Display Name (Required)

  • Enter billing address display name (maximum 50 characters)
  • Used as address identifier
  • Examples: “Head Office”, “Billing Department”

Country (Required)

  • Select billing country
  • Affects tax calculations and compliance requirements

Address Line 1 (Required)

  • Enter primary billing address (maximum 100 characters)
  • Street number and street name

Address Line 2 (Optional)

  • Enter secondary address line (maximum 50 characters)
  • Apartment, suite, or building details

Address Line 3 (Optional)

  • Enter tertiary address line (maximum 50 characters)
  • Additional address information

City (Required)

  • Enter billing city (maximum 50 characters)
  • Required for complete address

State (Required)

  • Select billing state or province
  • Used for tax calculations

Zip Code (Required)

  • Enter postal code (maximum 15 characters)
  • Required for address completion

Call Country Code (Optional)

  • Enter phone country code (maximum 5 characters)
  • Examples: “+1”, “+91”, “+44”

Phone Number (Optional)

  • Enter phone number (maximum 15 characters)
  • Contact number for billing queries

Step 4: Shipping Address

Same as Billing Address (Toggle)

  • Enable to use billing address for shipping
  • When disabled, separate shipping fields appear

When shipping address differs:

Display Name (Required)

  • Enter shipping address display name (maximum 50 characters)
  • Examples: “Warehouse”, “Delivery Location”

Country (Required)

  • Select shipping country
  • May differ from billing country

Address Line 1 (Required)

  • Enter primary shipping address (maximum 100 characters)
  • Delivery location details

Address Line 2 (Optional)

  • Secondary shipping address (maximum 50 characters)

Address Line 3 (Optional)

  • Tertiary shipping address (maximum 50 characters)

City (Required)

  • Enter shipping city (maximum 50 characters)

State (Required)

  • Select shipping state or province

Zip Code (Required)

  • Enter shipping postal code (maximum 15 characters)

Call Country Code (Optional)

  • Phone country code for delivery (maximum 5 characters)

Phone Number (Optional)

  • Contact number for delivery (maximum 15 characters)

Step 5: Order Line Items

Adding Items:

  1. Click "+ New Row" to add line items
  2. Fill in details for each item

Item (Required per line)

  • Select item/product from dropdown
  • Search by name, SKU, or brand
  • Item selection affects pricing and tax calculations

Quantity (Required per line)

  • Enter quantity (minimum 1)
  • Uses item’s configured unit of measurement
  • Affects total calculations

Rate (Required per line)

  • Enter unit price/rate
  • Can override item’s default price
  • Used for line total calculation

Discount Amount (Optional per line)

  • Enter line-level discount amount
  • Only available when discount level is set to “LINE_LEVEL”
  • Reduces the line total

Tax Rate (Optional per line)

  • Select applicable tax rate
  • Can override item’s default tax rate
  • Affects tax calculations

Amount (Read-only per line)

  • Automatically calculated line total
  • Formula: (Quantity × Rate) - Discount Amount
  • Updates automatically when other values change

Step 6: Order Summary

Apply Discount (Radio buttons)

  • Select when to apply order-level discount
  • Only available when discount level is “ORDER_LEVEL”
  • Options typically include before tax or after tax

Discount (Optional)

  • Enter order-level discount amount
  • Only when discount level is “ORDER_LEVEL”
  • Applied to entire order total

Adjustment (Optional)

  • Enter final adjustment amount
  • Can be positive or negative
  • Applied after all other calculations

Total Tax (Read-only)

  • Automatically calculated total tax
  • Sum of all line-level taxes
  • Updates based on tax rates and amounts

Total (Read-only)

  • Final order total
  • Includes all items, discounts, taxes, and adjustments
  • Updates automatically with changes

Step 7: Additional Information

Customer Notes (Optional)

  • Enter notes for customer (maximum 1024 characters)
  • Appears on printed/emailed proforma invoice
  • Used for special instructions or information

Terms and Conditions (Optional)

  • Enter terms and conditions (maximum 2048 characters)
  • Legal terms for the quotation
  • Standard terms can be saved as templates

Step 8: Save Proforma Invoice

  1. Review all entered information
  2. Click “Save as Draft” to save for later editing
  3. Click “Issue” to finalize and send to customer

Editing a Proforma Invoice

Proforma invoices can be edited based on their current state and business requirements.

Step 1: Find the Proforma Invoice

  1. Go to Proforma Invoices list
  2. Use search or filters to locate the invoice
  3. Click on the invoice row to view details

Step 2: Access Edit Mode

  1. Click the “Edit” button
  2. The editing form will open

Step 3: Edit Reason (For non-draft invoices)

Edit Reason (Required for issued invoices)

  • Enter reason for editing the invoice
  • Required when invoice state is not “DRAFT”
  • Maintains audit trail for changes

Step 4: Make Changes

  • Update any field as needed
  • Add or remove line items
  • Modify quantities, rates, or discounts
  • Update addresses or customer information

Step 5: Save Changes

  1. Review modifications
  2. Click “Save” to save as draft
  3. Click “Issue” to finalize changes

Deleting a Proforma Invoice

Proforma invoices can be deleted under certain conditions to maintain data integrity.

Step 1: Find the Proforma Invoice

  1. Go to Proforma Invoices list
  2. Locate the invoice you want to delete

Step 2: Check Deletion Eligibility

  • Draft invoices: Can usually be deleted
  • Issued invoices: May have restrictions
  • Linked invoices: Cannot be deleted if converted to sales order or invoice

Step 3: Delete Process

  1. Click on the invoice to view details
  2. Click the “Delete” button
  3. Confirm deletion when prompted

Important: Deletion may not be allowed if:

  • Invoice has been converted to sales order
  • Invoice has been converted to final invoice
  • Invoice is referenced in other transactions

Best Practices for Proforma Invoices

Accuracy and Professionalism

  • Double-check all pricing and tax calculations
  • Ensure customer information is current
  • Use clear, professional language in notes
  • Include comprehensive terms and conditions

Tracking and Follow-up

  • Use meaningful reference numbers
  • Set appropriate due dates for quotation validity
  • Follow up on issued proforma invoices
  • Track conversion rates from proforma to actual sales

Workflow Management

  • Use draft status for internal review
  • Issue only finalized quotations
  • Maintain consistent numbering sequences
  • Regular cleanup of expired quotations

Currency and Tax Compliance

  • Verify exchange rates for foreign customers
  • Ensure correct tax rates and calculations
  • Validate customer tax information
  • Maintain compliance with local regulations

Integration with Other Modules

Proforma invoices integrate seamlessly with:

  • Customers: Auto-populate customer details and preferences
  • Items: Use item pricing and tax configurations
  • Sales Orders: Convert proforma invoices to formal orders
  • Invoices: Generate final invoices from accepted proforma invoices
  • Reports: Track quotation success rates and sales pipeline
  • Email: Send professional proforma invoices directly to customers
CustomersSales Orders