Pro forma invoices

Pro forma invoices are used when you want to issue an invoice to the customer before you despatch any goods or services.

You can create pro formas for existing customers, or for prospect customers who don't yet have a customer account. Using a prospect account is useful because you don't have to create new customer accounts that you might never use.

For example, you might use a pro forma when:

• A customer's account is on hold or they have exceeded their credit limit, and you want to receive payment before goods are despatched.
• A new customer puts in a large value order. If the new customer becomes a regular customer, you can convert the pro forma invoice into a sales order.

A new pro forma is Live once it's saved, and becomes Completed when payment is received and the pro forma is converted to a sales order. Goods are only despatched once payment is received for a pro forma. You can delete pro formas (even ones that have been converted to a sales order) and this removes them from Sage 200.

What's in a pro forma?

Pro forma invoices are very similar to sales orders and consist of:

• Customer details, such as name, address, and terms of business.
• The items or lines required; such as stock items, free text items, additional charges, and comments.
• Discounts awarded, if appropriate.
• The warehouse the stock is to be supplied from.

• The delivery address if it's different to the customer's main address.

Entering pro formas

You can create a pro forma invoice in the following ways:

• Create a new pro forma for an existing customer.
• Create a new pro forma for a prospect.
• Copy an existing pro forma and then amend the information to suit.

Processing pro formas

Once you have prepared a pro forma:

• Print the pro forma.

  The pro forma invoice can be sent to the customer for payment.

• Convert the pro forma to a sales order.

  If the customer pays the pro forma, you can convert the pro forma to a sales order and proceed to despatch the goods and services from the order.

• Delete pro formas

  From time to time, you will want to delete pro forma invoices that you no longer need. This might be because the pro forma was issued and payment was never received, or because the pro forma has been converted to a sales order.

Once created, pro formas can have the following status:

• Live. The pro forma invoice has been generated and is pending payment.
• Completed. The pro forma invoice has been converted to a sales order, once payment has been received, and goods or services are despatched at that time.