Proforma invoices
Ask a party to pay before the books go out, record the advances, and turn the proforma into its invoice when the books ship.
/accounts/proformasA proforma invoice is the bill before the books, so a party can pay ahead. It is not a tax invoice. It puts nothing in the books and takes no books off the shelf. An advance paid against it waits on the party's account. When the books go out, the proforma becomes its invoice, and the advance pays it.
Raise a proforma
Start it
Open Proforma invoices and select New proforma.
Say who it is addressed to
Under Addressed to, choose the Party, a school or a trade party. Set the Date, and add Valid until if the request has an end date. It cannot be earlier than the proforma's date. Choose the Payment terms. They start on Advance payment.
Add the books
Set the Discount %, GST % and Freight (₹), then select Add a title for each book. Leave Rate empty for the catalogue price or type another. Leave Disc % empty to use the proforma's discount. The totals are worked out firm by firm, as they will be on the invoice.
Raise it
Add Notes on the proforma if you need them, and select Raise proforma.
You never choose the firm. If the titles belong to both firms, one proforma is raised from each, because each firm is paid into its own bank. The list then opens and says so. Any freight goes on the proforma with the larger value, as it will on the invoices.
Send it to the party
Use PDF, Print, Email or WhatsApp on the proforma's page. The Email button is for the desk only. The PDF is headed Proforma Invoice, and its total is labelled AMOUNT PAYABLE. It carries the firm's bank details, from the account marked to print on invoices, so the party knows where to pay. It also says: "This is not a tax invoice. The invoice is issued when the books are supplied."
Record an advance
When the party pays against the proforma, open it and select Record advance. Payment-In opens for this party and firm, tied to this proforma. Record the payment as usual.
The proforma's Advances received card lists each payment against it, the total Received, and what is Still to collect. A payment that was cancelled, or a cheque that bounced, is struck through and does not count.
Turn it into its invoice
When the books are going out:
Open the proforma
Open the proforma and select Convert to invoice.
Check the date and terms
Set the Invoice date. The Payment terms start as the proforma's, and you can change them. The dialog says how much already paid goes towards the invoice.
Issue it
Select Issue invoice, or Not yet to wait.
The invoice is issued at the proforma's prices, discounts and freight. It is billed to the name and address on the proforma, and it takes the books off the shelf. It appears under Sale invoices as a counter sale, and the invoice page opens. Any credit the party holds with that firm is set against it straight away, oldest first. That includes the advances against this proforma. The proforma becomes INVOICED and links to its invoice.
If that invoice is later cancelled, the proforma goes back to OPEN, ready to be invoiced again.
Cancel a proforma
Open it, select Cancel proforma, give a Reason of at least three characters, and confirm. The proforma posted nothing, so nothing is reversed. Any advance paid against it stays on the party's account as credit, and the next invoice to that party from that firm takes it up.
Only a proforma that is still open can be cancelled. To withdraw one that has been invoiced, cancel its invoice first. The proforma is then open again.
Statuses
| Status | Meaning |
|---|---|
| OPEN | Raised, waiting for payment or for the books to go out. |
| INVOICED | Turned into its invoice. |
| CANCELLED | Withdrawn with a reason. Advances stay on the party's account. |
Find a proforma
The list shows each proforma's Date, Proforma no. with its firm's tag, Party, Amount, Advance received and Status. Choose All proformas, Open, Invoiced or Cancelled, search by number or party, or use the Showing box for one firm. Each firm numbers its proformas from its own series.
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