Converting Proforma to Invoice

Converting Proforma to Invoice

Converting a proforma invoice to a regular sales invoice is a straightforward process in EquiBillBook. This conversion is typically done when an order is confirmed, goods are ready to ship, or services are about to be delivered. The conversion transfers all relevant information from the proforma invoice to create a proper sales invoice.

When to Convert Proforma to Invoice

You should convert a proforma invoice to a regular invoice when:

• Order Confirmation: The customer has confirmed the order
• Goods Ready: Products are ready to be shipped or delivered
• Services Scheduled: Services are about to be provided
• Payment Received: Advance payment has been received and you need to issue a formal invoice
• Accounting Entry: You need to record the sale in your books
• Tax Compliance: You need to create tax liability for GST/VAT purposes

Step-by-Step Conversion Process

Step 1: Locate the Proforma Invoice

To convert a proforma invoice:

1. Navigate to the Sales module
2. Go to "Sales Proforma" or "Proforma Invoice"
3. Find and open the proforma invoice you want to convert
4. Review all details to ensure accuracy before conversion

Step 2: Review Proforma Invoice Details

Before converting, verify the following:

• Customer information is correct
• All items and quantities are accurate
• Prices and discounts are correct
• Tax calculations are proper
• Shipping address and terms are correct
• Payment terms are finalized

Step 3: Click Convert to Invoice

On the proforma invoice page:

• Look for the "Convert to Invoice" button
• This button is typically located in the action menu or toolbar
• Click the button to initiate the conversion process

Step 4: Review Invoice Details

After clicking convert, you'll be taken to the invoice creation page with all proforma details pre-filled:

• Invoice Number: A new invoice number will be auto-generated based on your numbering rules
• Invoice Date: Will default to today's date (you can modify if needed)
• Customer Details: All customer information is copied from proforma
• Items: All items, quantities, and prices are transferred
• Taxes: Tax calculations are preserved
• Discounts: All discounts are maintained
• Additional Charges: Shipping and other charges are included
• Terms and Conditions: Terms are copied from proforma

Step 5: Make Any Necessary Adjustments

You can modify the invoice details if needed:

• Update quantities if they differ from the proforma
• Adjust prices if there are any changes
• Modify payment terms if required
• Update shipping address if changed
• Add or remove items if the order has changed
• Update delivery date or terms

Step 6: Save the Invoice

Once all details are correct:

• Click "Save" to create the invoice
• Or click "Save & Send" to save and email to the customer
• The invoice will be created with a unique invoice number
• Accounting entries will be automatically created

What Gets Transferred

The following information is automatically transferred from proforma to invoice:

Customer Information

• Customer name and contact details
• Billing address
• Shipping address
• Customer tax information (GST/VAT number)
• Payment terms

Item Details

• All items with descriptions
• Quantities
• Unit prices
• HSN/SAC codes
• Tax rates
• Discounts (item-level and document-level)

Financial Information

• Subtotal
• Tax amounts (CGST, SGST, IGST, etc.)
• Additional charges
• Discounts
• Grand total
• Currency (if multi-currency is enabled)

Other Details

• Terms and conditions
• Shipping method and charges
• Reference numbers
• Place of supply
• Branch/location (if multi-branch is enabled)

What Changes During Conversion

The following aspects change when converting from proforma to invoice:

Document Type

• Proforma: Preliminary estimate (not legally binding)
• Invoice: Official sales document (legally binding)

Document Number

• A new invoice number is generated according to your numbering rules
• Invoice numbers are sequential and follow your prefix/suffix settings
• The proforma number remains separate and is referenced in the invoice

Accounting Impact

• Proforma: No accounting entries created
• Invoice: Creates sales entry and accounts receivable
• Inventory is affected (if stock tracking is enabled)
• Tax liability is created for GST/VAT

Legal Status

• Proforma: Not legally binding for payment
• Invoice: Legally binding, creates payment obligation

Important Considerations

Before Conversion

• Ensure all proforma details are accurate
• Verify that goods are ready to ship or services are ready to deliver
• Confirm payment terms with the customer
• Check that prices and quantities are still valid
• Review tax calculations

After Conversion

• The proforma invoice remains in the system for reference
• The new invoice is created as a separate document
• You can link back to the original proforma if needed
• Accounting entries are automatically created
• You can send the invoice to the customer

Bulk Conversion

If you have multiple proforma invoices to convert:

• You can convert them one by one using the same process
• Each conversion creates a separate invoice
• Review each conversion to ensure accuracy
• Consider converting in batches for better organization

Troubleshooting

Cannot Find Convert Button

• Ensure you have proper permissions to create invoices
• Check if the proforma invoice is in a convertible state
• Verify that the sales module is properly configured

Invoice Number Not Generated

• Check your invoice numbering settings
• Ensure numbering rules are properly configured
• Verify that the numbering sequence is not exhausted

Items Not Transferring

• Check if items still exist in your item master
• Verify that items are active and available
• Ensure item codes match between proforma and item master

Best Practices

• Convert proforma to invoice only when goods/services are ready
• Review all details before finalizing the conversion
• Keep the original proforma for reference and audit trail
• Update any changed quantities or prices during conversion
• Send the invoice to the customer promptly after conversion
• Maintain a clear audit trail linking proforma to invoice
• Convert in a timely manner to maintain accurate records

What's Next?

After converting proforma to invoice:

• Send the invoice to the customer via email
• Print or download the invoice as PDF
• Track payment status
• Record payments when received
• Manage accounts receivable

Related Articles

Learn more about:

• Creating Proforma Invoices
• Proforma vs Invoice
• Creating a Sales Invoice
• Invoice Status Workflow