Pro Forma vs Commercial Invoice
Guide • Canada • last updated October 2026
What a pro forma invoice is, how it differs from a commercial invoice, and when to use each, with a free generator.
A pro forma invoice and a commercial invoice look similar but serve different purposes, especially in sales and shipping. This guide explains each and when to use it. Create a pro forma with the pro forma invoice generator.
What a pro forma invoice is
A pro forma invoice is a preliminary bill sent before goods or services are delivered. It confirms the expected price, terms and details so the buyer can approve the order or arrange payment. It is not a demand for payment and is not booked as a sale.
What a commercial invoice is
A commercial invoice is the final, binding request for payment issued once the sale is confirmed or goods are shipped. It is the document used for accounting and, in cross-border trade, for customs.
The key differences
- Status: pro forma is provisional, commercial is final.
- Accounting: only the commercial invoice is recorded as a sale.
- Use: pro forma confirms an order, commercial requests payment and clears customs.
When to use each
Send a pro forma to confirm price and terms before committing, common in international orders or custom work. Send the commercial invoice once the order is firm.
A worked example
An exporter sends a pro forma for a $5,000 order so the buyer can arrange a transfer. Once payment is agreed and goods ship, the exporter issues the commercial invoice with the same figures for the buyer's customs and accounting.
Where the pro forma fits in a sale
The pro forma does its work before anything is final. It lets a buyer confirm the price and terms, arrange payment or financing, and in cross-border trade, start import planning, all without creating an accounting entry on your side. Think of it as a formal offer rather than a bill.
The commercial invoice in cross-border trade
For shipments leaving or entering Canada, the commercial invoice is the document customs uses to assess duties and taxes. It must describe the goods, their value and origin accurately. Errors here cause delays and unexpected charges, so the commercial invoice has to be precise and consistent with the shipment.
Keeping the two consistent
The cleanest workflow is to issue the pro forma to confirm the deal, then issue the commercial invoice with identical figures once it is firm. Reference the pro forma on the commercial invoice so the buyer, and customs, can see they describe the same transaction.
Which to send, when
- Confirming price and terms before commitment: pro forma.
- Requesting payment and clearing customs: commercial invoice.
- Keep the numbers identical across both.
Getting cross-border documents right
For international orders, the paperwork matters more than at home. The pro forma lets the buyer arrange payment and plan the import; the commercial invoice is what customs uses to assess duties and taxes, so its description, value and origin must be accurate and consistent with the shipment. Errors here cause held packages and surprise charges, which sour the sale.
Keep the figures identical across both documents and reference the pro forma on the commercial invoice so everyone, including customs, can see they describe the same deal.
Cross-border checklist
- Pro forma to confirm price and terms.
- Accurate goods description, value and origin.
- Commercial invoice with matching figures.
- Reference the pro forma for traceability.
Frequently asked questions
What is a pro forma invoice used for?
A pro forma invoice is a preliminary document sent before delivery to confirm the price, terms and details so the buyer can approve the order or arrange payment. It is not a demand for payment and is not recorded as a sale.
What is the difference between a pro forma and a commercial invoice?
A pro forma is provisional and confirms an order, while a commercial invoice is the final, binding request for payment and the document customs uses for cross-border shipments. Keep the figures identical across both and reference the pro forma on the commercial invoice.
Do I record a pro forma invoice in my accounts?
No. Only the commercial invoice is booked as a sale and affects your tax. The pro forma is a quote-like confirmation, so it stays out of your revenue and GST/HST reporting until the commercial invoice is issued.