A Proforma Invoice is a Sales Order that looks like an Invoice, but has no accounting impact to the organization. No products or services are delivered, no revenue is generated, and the customer has no obligation to pay.
The purpose of a Proforma Invoice is to confirm to the customer that the seller is committed to provide the goods and services listed in the document, at the set price. They are typically used to provide a quote or estimate that the customer can take to management or Accounts Payable for approval. Member organizations often use them to notify customers that their membership or Subscription is coming up for renewal.
When a Proforma Invoice is created, the staff user has the ability to email a PDF copy of the Invoice to the person requesting it. The email can contain boilerplate content or be customized ad hoc. If the Business Group has a Community Portal configured, the Proforma Invoice email will automatically contain a link that returns the recipient directly to the portal checkout where they can make their payment.
Customers can access a Proforma invoice via the email link or by viewing their orders from the Community Portal. Proforma invoices are visible in the Community Portal by default.
Staff users can also enable an automatic, scheduled Proforma Invoice email on a Subscription Plan. When Auto Send Proforma Invoice Emails is enabled, the system will create a Proforma Invoice for the subscription renewal and email it to the subscriber on the date specified by the Invoice Days Variable. Given that the purpose of this email is to prompt customers to renew their subscription, another set of Proforma Invoice Email fields is available on the Subscription Plan itself, so that the renewal email can be tailored to fit a specific Subscription type.
Proforma Invoices corresponds to Sales Orders with:
Posting Entity of Receipt
Schedule Type of Simple Receipt.
Status of Unpaid
Posting Status as Pending