How to create pro-forma invoice in Odoo

Odoo is an all in one business application, that helps in managing business and organizations.  Since Odoo is an Open-source Software it has got many benefits like accessibility for community users and extensive scope of customization according to the special needs of the customers. Odoo offers more than thousand modules including CRM, Sales, Human Resource, Warehouse Management, Financial Management and Manufacturing for businesses in all size. This tool smoothly integrates all these operations to improve the overall efficiency. Where Sales module provides wide variety of features like quotations, invoicing, catalogue, reporting,configuration etc, will useful for all business types. MS Excel and Word offers templates for proforma invoice, but they were often difficult and unreliable. But, It takes literally one click to create a completed proforma invoice in Odoo. Also this platform is suitable to any work settings. Lets have a look into..

What is pro forma invoice?

Proforma invoice is a precised document about the order placed by customer, which have been sent before the delivery of products. A proforma invoice doesn’t mean the transaction is done, it indicates the deal between buyer and seller. It does not used to request buyer for payment of the goods dispatched to him on credit. Proforma invoice used as demand for payment, when the company is dealing with new party, or with the party, whom the firm does not have any credit arrangement. The document contains description of goods that is quantity, price, weight and other specifications. It is a declaration by a seller to provide the product or services to the buyer on the specified time and price. Once the proforma invoice accepted by the buyer he should signed it and returned to the seller. These process leads to the generation of commercial invoice.

Uses of Pro-forma Invoice

• Provides import license for the product or services.
• proforma invoice is the basics of all commercial transactions and further negotiation or contract made based on it.
• For establishment of advance payment by the buyer through his bank, usually banks prefer proforma invoice to a quotation.
• Encourage sellers to include all the information that shall appear in the commercial invoice.
• Assist the buyer in seeking additional financing for the project.

Pro forma invoice vs  invoice

Proforma invoice is the complete details about agreement of sales. Where as, invoice is a non negotiable details of the products or service, which can be raise by the seller and deliver to the buyer. The content in both invoice and proforma invoice are almost similar. But price may vary from both proforma invoice and invoice.  Invoice is also known as commercial invoice which is considered as accounts receivable for the sellers and accounts payable for the buyers.

When seller sends quotation to the buyer about the quantity and variable prices at which buyer can buy is called proforma invoice. When buyer accepts to buy the products at specified price then the deal is called invoice or commercial invoice.

A commercial invoice must list substantial information such as the buyer and the seller, a description of the goods, the quantity, the value for all items shipped and the location of the purchase. But pro-forma invoice requires only enough information to allow customs to determine the required duties from a general examination of the included goods.

How to create Pro-forma invoice in Odoo?
Sales > Configuration > Settings >  Quotations & Orders > Pro-forma Invoice > Save.

Mail a copy of invoice to the buyer

Quotations > Select Quotation Number > Send PRO-FORMA Invoice > Send

To print the copy of Pro-forma Invoice in Odoo

Quotations > Select Quotation Number > Print > PRO-FORMA Invoice

Hope you are clear about the pro-forma invoice in Odoo.