Pro forma invoice

A pro forma invoice looks like an invoice, with line items, quantities, prices and a total, but it isn’t a demand for payment for completed work. It tells the client what the final bill will be, or what they need to pay up front.

Contractors use one to request a deposit before ordering special materials, to give a client’s lender or accounting team a document to approve, or to show a business client the charges ahead of time so they can set up payment.

Label it clearly as “Pro Forma Invoice,” give it its own number series or prefix, and say that a final invoice will follow. That keeps it out of your sales totals and avoids the client paying twice.

In accounting terms, a pro forma is closer to an estimate than to an invoice: it doesn’t create a receivable. When the work is done or the deposit is due, issue a real invoice that refers to it.

If the price could change, say so on the document and point to the estimate or contract that governs.