Inventory glossary
What is Proforma invoice?
A proforma invoice is a preliminary bill a supplier sends before shipping goods, listing items, quantities, prices and terms so the buyer can review and approve before payment or production.
For a small Shopify store, a proforma invoice is how you confirm costs before committing money. It shows unit prices, totals, shipping terms and payment terms so you can check everything matches your purchase order before the supplier starts production or ships anything.
Use it as a checkpoint. Compare it line by line against what you ordered, confirm the total and payment terms, and only pay or approve once the numbers match. If something is off, like a higher unit price or wrong quantity, this is the moment to fix it before the goods are made or shipped.
Example
A candle store orders 200 units of a new scent at $4.50 each. The supplier sends a proforma invoice showing 200 units, $4.50 per unit, a $900 total, and 50% deposit due before production. The owner checks the quantity and price match the agreed order, then pays the $450 deposit to start production.
Common mistakes
- Treating a proforma invoice as a final bill and paying twice when the real invoice arrives later.
- Not checking that quantities and prices match the original purchase order before approving.
- Ignoring payment terms stated on the proforma, like deposit percentage or due dates, which causes delays in production or shipping.
Proforma invoice and SteadyShelf
SteadyShelf drafts the purchase order you send to a supplier, but matching that order against a proforma invoice and handling payment is a separate manual step.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Purchase order · Supplier · Commercial invoice · Net 30 payment terms · Supplier deposit
FAQ
Is a proforma invoice the same as a final invoice?
No. A proforma invoice is a preview sent before shipment or production, used for approval and deposits. The final or commercial invoice comes after, often with the actual shipment, and is the official document for payment and customs.
Do I need a proforma invoice for every order?
Not always. Small reorders with an established supplier often skip straight to a purchase order and commercial invoice. Proforma invoices are more common for new suppliers, custom products, or large orders where upfront payment confirmation matters.
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