Understanding Pro Forma Invoices and Invoicing Transactions

Introduction

A pro forma invoice is a preliminary document for a guest or group. It can include charges that are not yet final and can be used as an estimate or quote before a standard invoice is created.

A pro forma invoice does not post financial entries or lock its transactions. Charges included in it remain available for standard invoicing later.

Table of contents

• Understand pro forma invoice features
• Create a pro forma invoice
• Compare transaction availability
• Review invoicing transaction rules
• Manage actions and statuses
• Customize pro forma invoices
• Review a pro forma invoice example

Understand pro forma invoice features

Use these characteristics to determine whether a pro forma invoice is the correct document for the guest or group.

• Preliminary document: The template clearly identifies the document as a pro forma invoice.
• Pending transactions: Pro forma invoices can include pending charges. A separate setting can also allow pending charges on standard invoices.
• Transactions remain available: Charges are not locked to the pro forma invoice and can be included in a standard invoice later.
• Stored in Documents: The document is saved in the Documents section of the reservation or group folio.
• Guest quote or estimate: Use Accept Estimate or Reject Estimate to track the guest's response. These actions do not affect the folio or posted charges.

Create a pro forma invoice

Start from the reservation that contains the charges you want to include.

1. Open the required reservation.
2. Click Actions in the upper-right corner.
3. Select Create Pro Forma Invoice.

Compare transaction availability

Transaction labels help you distinguish pending charges from posted charges before creating a document.

Create Pro Forma Invoice dialog

The pro forma invoice dialog shows pending transactions, posted transactions, and payments.

Create Invoice dialog

By default, the standard invoice dialog for the same reservation shows posted transactions and payments only.

Review invoicing transaction rules

These rules apply to reservations and group folios.

• Payment-only invoices: A standard invoice must include at least one posted transaction in addition to any payments. The system displays an error if you attempt to create an invoice containing payments only.

  

• Pending transactions: Pending transactions cannot be added to a standard invoice by default. Enable Allow invoicing pending transactions in the Finance settings to add them. After a pending transaction is added to a standard invoice, it becomes locked and cannot be invoiced again.

Manage actions and statuses

A pro forma invoice supports actions for tracking the guest's response and distributing the document.

• Default status: Open.
• Accept Estimate: Changes the status to Accepted.
• Reject Estimate: Changes the status to Rejected.
• Delete: Changes the document status to Canceled.

You can also View, Send, or Download a pro forma invoice from a reservation or group folio.

Pro forma invoice statuses

• Non-financial statuses: A pro forma invoice can be Open, Accepted, Rejected, or Cancelled.
• No Paid or Closed status: A preliminary document cannot use statuses reserved for final financial documents.
• Cancellation: A pro forma invoice does not require a credit note. Change its status to Cancelled.

Customize pro forma invoices

Use the invoice settings to adapt the document for quotes and guest payment instructions.

• Editable title: Change the pro forma invoice title, for example to Tax Estimate.
• Custom footer: Add information such as bank details for guest wire transfers.
• Estimate tracking: Use Accept Estimate and Reject Estimate to record the guest's response without changing the folio or financial records.

Review a pro forma invoice example

The following example shows the generated pro forma invoice document.

Next Operational Step

After the guest accepts the estimate and the stay or sale is complete, create a new standard invoice using the finalized posted charges.