How to Create a Proforma Invoice in Tally: A Complete Step-by-Step Guide for 2025

Published on: 26-11-2025 Call CA Tally HelpDesk +91 9205471661, 8368262875

A Proforma Invoice is one of the most essential documents for businesses that need to share estimated pricing, product details, and terms with customers before raising the final invoice. Whether you run a trading firm, service company, manufacturing unit, or retail business, customers often ask for a Proforma Invoice before confirming the order.

Tally Prime makes it extremely simple to generate a professional, accurate Proforma Invoice without affecting your accounts, inventory, or sales reports. This is helpful when a quotation is required but you want it in an official invoice format.

This complete guide explains what a Proforma Invoice is, why it’s important, and how to create one in Tally Prime step by step.

 What Is a Proforma Invoice?

A Proforma Invoice is a pre-sales document issued to customers that contains:

• Product details
• Quantities
• Estimated pricing
• Taxes
• Terms & conditions

It is not a legal invoice and does not affect your books of accounts. It is only a quotation in invoice format.

Businesses use Proforma Invoices to:

• Share a price estimate
• Confirm customer intent
• Request advance payment
• Get approval before creating the final invoice
• Avoid errors in final billing

 Why Create a Proforma Invoice in Tally Prime?

Tally Prime allows you to:
✔ Create a Proforma Invoice without affecting inventory
✔ Convert Proforma to a final Sales Invoice in one click
✔ Print and email the document professionally
✔ Maintain accurate order tracking
✔ Reduce manual entry mistakes

Tally treats a Proforma Invoice as a non-accounting voucher, so it does not appear in GST returns, books of accounts, or stock summaries.

 How to Create a Proforma Invoice in Tally Prime (Step-by-Step)

Step 1: Enable Proforma Invoice in Tally

1. Open Tally Prime
2. Go to Gateway of Tally
3. Select F11 – Features
4. Choose Accounting Features
5. Enable:
   ✔ “Proforma Invoice” (under Sales Management options)

Press Ctrl + A to save.

Step 2: Open the Proforma Invoice Voucher

Follow the path:
Gateway of Tally → Vouchers → Proforma Invoice

OR simply press:
�� Ctrl + F10 (Proforma Voucher)

(Proforma voucher shortcut may vary depending on version.)

Step 3: Fill in the Customer Details

Enter:

• Customer Name
• Billing Address
• Delivery Address (if required)
• GST Number (optional, since this is not a GST invoice)

Step 4: Add Items & Pricing

Now enter:

• Item Name
• Quantity
• Rate per unit
• Tax percentage (optional)
• Discounts (if applicable)

Tally automatically calculates:

• Total amount
• GST estimate
• Taxable value
• Grand total

Note: GST in a Proforma Invoice is only informative. It does not affect returns.

Step 5: Add Terms & Conditions

At the bottom of the voucher, enter common terms such as:

• Payment terms
• Delivery time
• Validity period
• Warranty information
• Additional notes for the customer

Example:
✔ This Proforma Invoice is valid for 7 days from the date of issue.

Step 6: Save and Print/Email the Proforma Invoice

Press Ctrl + A to save.

To print:

• Press Alt + P → Print
• Choose printer settings
• Print in normal or GST format

To email:

• Press Alt + M → Send Email

Tally automatically formats it into a clean, professional layout.

 How to Convert a Proforma Invoice Into a Final Sale Invoice

Once the customer approves:

1. Open the Proforma Invoice
2. Press Alt + F8: Create Invoice from Proforma
3. Tally copies all details into a Sales Voucher
4. Save the Sales Voucher

This eliminates repetitive data entry.

 Where Can You View Proforma Invoices in Tally?

Tally keeps Proforma Invoices in a separate register:

Go to:
Gateway of Tally → Display → Statements of Accounts → Proforma Register

Here you can:

• View all Proforma Invoices
• Check pending approvals
• Edit or delete drafts
• Convert to sales invoices

 Tips to Make the Best Proforma Invoice

• Always include validity period
• Mention delivery time clearly
• Add advance payment terms
• Include item descriptions for clarity
• Ensure your company GST, PAN, and contact details are correct
• Keep numbering format simple and traceable

 Final Thoughts

Creating a Proforma Invoice in Tally Prime is extremely easy and practical for businesses that need customer approval before generating a final invoice.
With features like one-click conversion to a Sales Invoice, clean printing formats, and zero impact on your accounts, Proforma Invoices help reduce confusion, avoid billing mistakes, and improve professionalism.

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