How to Create a Proforma Invoice in QuickBooks Desktop?

how to create a proforma invoice in quickbooks

Proforma invoices have multiple uses for a variety of things including customers and shipping. It is a practice to create custom pricing through sales based on specific requirements. Let’s learn more about Proforma Invoice and other essentials such as how to create a Proforma Invoice in QuickBooks Desktop with the help of this guide. 

What is Proforma Invoice in QuickBooks?

Proforma is a type of invoice that provides deep information about products and services including payment information. This information is also known as Quotes or Estimates. Basically, it acts as a preliminary bill of sale.

Using a Proforma invoice is an act of revealing that the seller wants to deliver the product to his customer. This invoice is shared with the customers before finalizing the deal with information such as cost, delivery details, terms and conditions, and goods and services.

Most companies collect information about deals and make a fictitious invoice. This ensures how the future invoice will look like.

Difference Between the Invoice and Proforma Invoice

The invoice can be identified as a confirmed purchase order whereas the Proforma invoice is made to create sales. If a customer asks the seller before the order placement, the seller sends the Proforma invoice (since it is more casual than the original bill).

Generally, a Proforma invoice is used for the new consumer who prefers to purchase before placing the order. It helps make a bond between seller and customers. On the other hand, invoices are legally binding bills. Invoice is created when the product has been delivered or the service has been provided.

Different Kinds of Proforma Invoices

  • Standard Invoice
  • Automatic Invoice
  • Commercial Invoice
  • Progress Invoice
  • Pro-Forma Invoice
  • Debit Invoice
  • Credit Invoice
  • Prepaying Invoice
  • Mixed Invoice

These are the most common invoices in QuickBooks that can be used for various purposes. But before you create and send these Proforma invoices to the customer, you should remember the following pointers.

  • Proforma Invoices are not original invoices. It is created before finalizing the deal.
  • Sellers do not record Proforma invoices for accounts receivable.
  • It is also not recorded as the account payroll or payable by the client.

In QuickBooks bids, proposals, and quotes are named as Estimates only. In addition, QuickBooks has no specific Proforma Template or Proforma Form. Hence, users have to use QuickBooks Estimate Form Template. Doing so, you can rename it (from Estimate to Proforma Invoice).

How Do I Create a Proforma Invoice in QuickBooks?

To create a Proforma invoice, one has to choose Estimate as a new form. Later, you can change the name of the form. To understand how to create proforma invoice in QuickBooks, follow these steps discussed below:

  • Log in to the “QuickBooks” account.
  • Click on the “Gear” icon located on the top of the screen.
  • Then, click on the “Custom Form Styles” from the list of options.
Custom Form Styles - how to create proforma invoice in quickbooks
  • Select the “New Style”.
  • Choose the “Estimate” option from the menu.
  • Click the “Content Tab”.
  • In the “Custom Form Styles” panel, click the “Edit” button.
  • Select the “Make Default” option.
  • Rename the form based on your preference, e.g., Proforma Invoice.
  • Hit the “Save” button.

After saving your form, you can click the Exit button. This way you can easily create Proforma Invoice in a QuickBooks account. Thereafter, you can send this to the customer before finalizing the deal.

How to Create Multiple Invoices in QuickBooks?

For creating multiple invoices, uses can opt for the usual way (from the Create button). To know the procedure for creating and deleting multiple invoices, follow these instructions:

  • In QuickBooks, click on the “Create” icon.
  • Then, go to the “Multiple Invoices” option.
  • Click on the “(+)” icon to add the invoice located on the left.
  • To create a new invoice, start adding multiple invoices. Once you do so, each invoice will be numbered.
  • Now, click on any field to add the information.

You have now learned how to create a Proforma Invoice in QuickBooks (in batch). This is how you can create multiple invoices in QuickBooks. In case you wish to delete the invoice then you can click on the three vertical dots to open the Menu bar and then hit the Delete Invoice button.

How to Create Duplicate Invoice for Customers in QuickBooks?

There can be instances when you have to share the same invoice with multiple users. In such scenarios, you can duplicate the invoice and send it to the concerned person. Here is how to duplicate an invoice.

  • Select the invoice that you want to duplicate.
  • Click the “Duplicate invoice for multiple customers” option.
Duplicate invoice for multiple customers - create proforma invoice in quickbooks
  • Then, you can choose your customers to whom you want to send the same invoice.
  • Click the “Next” button. This will display the invoice for each customer in the “Multiple Invoices” window.
  • After updating your invoices, click the “Save” button.

This is how you can duplicate the invoices in QuickBooks. However, one has to remember that duplicating the invoice will also duplicate all the lines. In case you have not set up the tax preferences or customer-specific terms then it is not suggested to use multiple invoices in QuickBooks.

How to Include Company Logo to Your Proforma Invoice in QuickBooks?

Some users prefer to add the company logo to the Proforma Invoice in QuickBooks Self Employed. Company logos can be added to the web or an app. Here we will show steps for both. Check out these steps mentioned below:

Add Your Company Logo for Web

  • Click on the “Invoices” located on the left.
  • Go to the “Create Invoice” or “Edit” button to modify the invoice.
  • Now, switch to “Edit work info”.
  • At this stage, you can upload the image of the logo.
  • Hit the “Save” button.

Add Your Company Logo for App

  • Go to the “Settings” from the menu.
  • Click on “Work info”.
  • Go to “Edit the logo”.
  • Browse your file.
  • Hit the “Upload” button.
  • Click the “Save” option.

By following these steps, you can easily upload the logo of your brand or company to the invoices. This is beneficial especially if you want your brand to be recognized by customers.

How to Apply Payment to the Invoice?

If you want to apply the payment to the correct invoice, you can do it by selecting your customer. To do so, follow these steps:

  • Click on the “Create” icon.
  • Go to the “Receive payment” button.
  • Now, choose the name of your customer.
  • Here, you need to verify the “Journal Entry”.
  • Then, verify the “Open balance amount”.
  • Click the “Save” button.
  • Now “Close” the options.

This way you can easily apply the wrong customer invoice. However, there can be instances when a user receives the payment for a wrong invoice. In this scenario, you can fix this by applying the payment to the correct invoice.

You can also create a new journal entry to fix the payment that is applied to the wrong customer invoice. Here is how to do it.

  • Click on the “Create” icon.
  • Go to the “Journal entry” located under the Other” section.
  • Then, you have the complete these steps:
    • Credits: Enter the amount that needs to be transferred.
    • Account: Receivable account.
    • Customer name: Choose the customer to who you want to send the payment.
  • After this, users are required to fill in these details (exactly as above) in the second line.
  • Hit the “Save” and “Close” buttons.

You have now learned how you can apply the payment to the correct invoice and fix the payment that is applied to the wrong invoice.

How to Convert Proforma to the Invoice?

In case you ever need to convert your Proforma invoice to an invoice then you should have to choose what items will be there in the invoice. Here is how to do that.

  • In the “Quotes group”, click the “Manage on the sales marketing” tab.
  • Click twice on the “Quotes” that you wish to open.
  • Select the “Invoice” option.
  • Hit the “Yes” button when prompted.

Once you press the Create invoice button, it will convert estimates into the invoices. Thereafter, you can share the invoice with the considered customer.

Final Verdict

We hope you find this guide useful.

While working on QuickBooks, it is common to receive errors. If you are bothered by the following QuickBooks errors, fix them now.

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