Introduction
Are you still managing your business’s invoicing process manually? In this detailed guide, we’ll uncover what a Proforma Invoice is, its importance, and how Odoo—a market-leading CRM/ERP solution—helps businesses streamline invoicing processes.
If you’ve ever wondered, “What is a pro forma invoice?”—you’re not alone. A pro forma invoice is a preliminary bill sent to the buyer before the actual delivery of goods or services. It outlines transaction details like items, quantities, prices, and payment terms. However, unlike a standard invoice, a pro forma invoice doesn’t trigger accounting entries or tax obligations.
Alex Koltsov, ERP consultant and founder at ERPixel, explains:
“In real business, a Proforma Invoice is often the document your client takes to the bank to make a payment. The key difference between a proforma and a regular invoice is that the proforma may never be paid—and that’s okay. It doesn’t affect your accounting records. In Odoo, an invoice is an official accounting document that posts a journal entry (account move), and once posted, it can’t simply be deleted. Proforma, on the other hand, is just a payment proposal—it’s like a formal offer on company letterhead.”
Business Problem
Entrepreneurs and business managers across the USA and UK frequently encounter invoicing challenges, such as:
- Manual data entry errors leading to inaccuracies and disputes
- Difficulties in tracking payments and unpaid invoices
- Delays in invoice processing that hurt cash flow
- Poor invoice management negatively impacting customer relationships
These problems affect both financial clarity and operational efficiency.
Odoo Solution: Proforma Invoice vs Quotation
Odoo offers built-in support for Proforma Invoices, which can be activated in settings. Once enabled, you’ll see the option to send a document titled Proforma Invoice instead of the default Quotation.
Alex Koltsov explains the practical difference:
“Technically, in Odoo, there’s no big functional difference between a Quotation and a Proforma Invoice—except for the document title. But in practice, it matters. Quotations usually don’t contain payment details. They’re just a price proposal—no discounts, no payment terms. A quotation is what you send when the client simply wants to know the price, and the deal hasn’t been fully discussed. Once they decide to buy, we issue a Proforma Invoice with all the payment instructions included.”
How to Generate a Proforma Invoice in Odoo
Creating a proforma invoice in Odoo is quick and easy:
- Navigate to the Sales Order
- Click Print → Proforma Invoice
- Or use the Send Proforma Invoice button to email the client with a pre-written template and the proforma PDF attached
This flexibility makes it simple to offer clear payment instructions without affecting your accounting.
Advanced Proforma Customizations with ERPixel
At ERPixel, we frequently tailor the Proforma Invoice document to better suit business needs. This includes:
- Adding product images
- Calculating discounts dynamically
- Reflecting deliveries from multiple warehouses within the same order
- Automating multi-level approval processes
Alex adds:
“Odoo’s standard proforma is a great starting point, but many companies need more. At ERPixel, we regularly enhance the proforma flow to meet client-specific requirements. Whether you want to include visuals, warehouse details, or approval workflows—we’ve done it. If your company needs to upgrade how you handle proforma invoices, get in touch and we’ll calculate a solution tailored to your process.”
Comparison with Competitors
When compared with SAP, Oracle NetSuite, Zoho, or Microsoft Dynamics, Odoo stands out for:
- User-Friendliness: Simple UI and easy setup
- Affordability: Flexible pricing suitable even for SMEs
- Extensibility: Easy to customize and integrate
- Support: Ongoing updates and strong community backing
Main Benefits of Odoo Invoicing:
- Eliminate manual errors
- Improve payment clarity and cash flow
- Tailor your invoicing to match your business logic
- Empower your sales and finance teams with automation
Summary
Businesses struggling with outdated or manual invoicing can significantly benefit from Odoo’s streamlined process. Whether you need standard or customized proforma invoice workflows, Odoo—backed by ERPixel—makes it easy to modernize your approach.
