How to Configure & Issue Proforma Invoices

A Proforma Invoice is an estimated or preliminary bill sent to a buyer prior to the delivery of goods or completion of services. It details item descriptions, quantities, unit prices, shipping weights, and delivery fees.

Business Context

Unlike a final Tax Invoice, a Proforma Invoice does not post journal entries to the General Ledger and does not create accounts receivable (A/R) debt. It is strictly a commercial document.

Prerequisites & Permissions

Ensure you have the following access rights before issuing proforma invoices:

• Role: Sales Executive, Sales Manager, or Billing Clerk
• Permission: Sales.ProformaInvoice.Create and Sales.ProformaInvoice.Print

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Step 1: Configuring Proforma Numbering Sequences

Before issuing your first proforma invoice, system administrators must ensure numbering sequences are configured:

1. Navigate to System Administration → Document Sequences.
2. Select the Sales category.
3. Locate Proforma Invoice Sequence (Default code: PI-YYYY-XXXX).
4. Set the desired prefix, fiscal year token, and minimum digit padding.
5. Click Save Changes.

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Step 2: Creating a Proforma Invoice

There are two methods to generate a proforma invoice in Gluon ERP:

Method A: Converting from an Existing Quotation

1. Navigate to Sales → Quotations.
2. Open the confirmed quotation.
3. Click the Action button on the top toolbar and select Generate Proforma Invoice.
4. The system automatically populates all line items, customer addresses, discounts, and payment terms from the quote.

Method B: Creating Directly

1. Navigate to Sales → Proforma Invoices.
2. Click the + New Proforma Invoice button.
3. Select the Customer from the dropdown. Payment terms and default billing address populate automatically.
4. In the Line Items table:
   • Select the product or service.
   • Enter the Quantity and verify the Unit Price.
   • Select applicable Tax Rates (e.g., Standard VAT 15%).
5. Add internal notes or special shipping instructions in the Terms & Remarks tab.
6. Click Save as Draft or Issue Document.

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Converting to a Final Tax Invoice

Once the customer provides payment confirmation or LC verification:

1. Open the issued Proforma Invoice.
2. Click Convert to Tax Invoice.
3. Choose whether to invoice the full quantity or a partial milestone.
4. Review the generated Tax Invoice and click Post to Ledger.

Audit Trail

The resulting Tax Invoice maintains a direct hyperlink back to the original Proforma Invoice and Quotation for audit tracking.