Create Proforma Invoices

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You can create and send a proforma invoice in Zoho ERP when you need to share item details, pricing, taxes, and terms with a customer before creating the invoice. You can later convert it into a final invoice after the customer confirms the order.

You can create a proforma invoice in any of the following ways:

• Create it manually as a standalone transaction
• Create it from a quote
• Create it from a sales order

Create Proforma Invoices Manually

To create a proforma invoice:

• Go to Sales on the left sidebar.
• Select Proforma Invoices on the top bar under Invoices.
• Click + New.
• In the New Proforma Invoice page, fill in the following fields:
  • Customer Name: Select the customer for whom you want to create the proforma invoice from the dropdown. If the customer does not exist, click + New Customer.
  • Location: Select the location from which the proforma invoice is being created.
  • Proforma Invoice #: The proforma invoice number is generated automatically based on the active number series. Click the Settings icon next to the field if you want to enter a custom number or change the number series.
  • Reference#: Enter a reference number such as a customer purchase order number, if required.
  • Proforma Invoice Date: The current date is selected by default. Modify it if needed.
  • Expiry Date: Select the date until which the proforma invoice is valid. After this date, the proforma invoice is marked as Expired.
  • Salesperson: Select the salesperson handling this transaction. Click Manage Salesperson to add or edit a salesperson.
  • Subject: Enter a short summary that describes the purpose of the proforma invoice. This appears on the PDFs and the email you send to the customer.
  • Item Table: Select and add items to the table. Then fill in the following columns:
    • Quantity: Enter the quantity for each item.
    • Rate: The rate is auto-filled based on the item’s rate. Modify it if required. Click Apply Price List under this field to select a price list.
    • Tax: This is auto-filled based on the item or customer’s tax status. Modify it if required.
    • Discount: Enter a percentage (%) or amount.
  • Customer Notes: Add any notes that should appear on the proforma invoice for the customer. If you have set any default customer notes in Proforma Invoice Preferences, they appear here automatically.
  • Terms & Conditions: Add the terms and conditions for this transaction. If you have set any default terms and conditions in Proforma Invoice Preferences, they appear here automatically.
  • Shipping Charges: Add shipping costs if required. Click Apply Tax on Shipping Charge to select a tax on shipping.
  • Adjustment: Enter adjustments if required. Use a negative (-) value to reduce the amount.
  • TDS/TCS: Choose whether to apply Tax Deducted at Source (TDS) or Tax Collected at Source (TCS), based on your tax setup.
  • Attach File(s) to Proforma Invoice: Attach supporting documents such as the customer’s request email or purchase order. You can upload up to 10 files, with a maximum file size of 10 MB per file.
  • PDF Template: Select the PDF template to use when the proforma invoice is printed or shared.

After filling in the proforma invoice details, choose one of the following options:

• Save as Draft: Save the proforma invoice in the Draft status. You can edit it later or submit it for approval.
• Save and Send: Save the proforma invoice and email it directly to the customer. The proforma invoice is marked as Sent.
• Save and Print: Save the proforma invoice and open the print preview to download or print it.
• Save and Submit: If an approval workflow is configured, you can save the proforma invoice and submit it to the configured approver.
  • Click the dropdown next to Save as Draft.
  • Select Save and Submit and the proforma invoice will be marked as Pending Approval.

Convert Quotes to Proforma Invoices

You can convert a quote marked as Sent or Accepted into a proforma invoice. This is useful when the customer has accepted a quote and you want to share a proforma invoice with them before issuing the actual invoice. To convert a quote into a proforma invoice:

• Go to Sales on the left sidebar.
• Select Quotes on the top bar.
• Open the quote you want to convert to a proforma invoice.
• Click Convert in the top bar.
• Select Convert to Proforma Invoice.
• Verify and edit details if required.
• Click Save and Send.

Convert Sales Orders to Proforma Invoices

You can convert a confirmed sales order into a proforma invoice before converting it into an invoice. To convert a sales order into a proforma invoice:

• Go to Sales on the left sidebar.
• Select Sales Orders on the top bar under Sales Orders.
• Open the sales order you want to convert to a proforma invoice.
• Click Convert in the top bar and select Convert to Proforma Invoice. Or, if the sales order is in Draft status, click More and select Convert to Proforma Invoice.
• Verify and edit details if required.
• Click Save and Send.