How to Build an Automated Performa Invoice Format Template in Xero

Build an Automated Proforma Invoice Template in Xero: Step‑by‑Step Guide

Creating a professional, repeatable proforma invoice in Xero can save you hours of manual work, reduce errors, and give your clients a polished, consistent experience. In this guide we walk through every step—from setting up the template to automating recurring billing—so you can start generating proforma invoices in minutes.

Why Proforma Invoices Matter

A proforma invoice is a preliminary bill sent before the final invoice. It outlines the goods or services, prices, taxes, and payment terms. For businesses that need to provide customers with a clear estimate—such as exporters, rental shops, or subscription services—proforma invoices are essential. They help secure commitments, clarify expectations, and streamline the payment process.

Key Benefits

• Clarity: Clients know exactly what they’re paying for.
• Speed: Quick turnaround reduces order cycle time.
• Automation: Reduce manual entry and errors.
• Compliance: Align with GST, VAT, and other tax regulations.
• Professionalism: Consistent branding builds trust.

Prerequisites

Before you dive in, make sure you have:

• A RentInvoice account for rental management.
• Access to Xero with administrative privileges.
• An active Recurring Invoice subscription for automated billing.
• Basic knowledge of Xero’s invoice settings.

Step 1: Create a New Invoice Template in Xero

1. Log in to Xero and navigate to Settings > Invoice Settings.

2. Click + New Template and name it “Proforma Invoice – Automated.”

3. Select the template type as Proforma to ensure Xero treats it as a non‑final document.

4. Customize the header with your company logo, address, and contact details.

Formatting Tips

• Use a clean, sans‑serif font like Arial or Helvetica for readability.
• Include a bold heading “Proforma Invoice” to distinguish it from regular invoices.
• Add a unique reference number format (e.g., PRO‑YYYY‑XXXX) for easy tracking.

Step 2: Set Up Line Items and Tax Rules

Define the common products or services you’ll bill for. For each item:

• Enter a descriptive name.
• Set a unit price.
• Choose the correct tax rate (e.g., GST 18%).

If you sell multiple categories—like equipment rental, costuming, and vehicle leasing—create separate line items for each. This granularity helps when generating PDFs or exporting data to BillFormat for custom layouts.

Step 3: Automate the Template with Xero’s Automation Rules

Xero’s automation rules let you trigger actions when specific conditions are met. To automate proforma invoices:

1. Go to Automation > Rules.
2. Create a new rule named “Auto‑Generate Proforma.”
3. Set the trigger to When a new Sales Order is created.
4. Choose the action Send Proforma Invoice using the template you created.
5. Map the fields: Order number → Invoice reference, Customer → Recipient, Order lines → Invoice line items.
6. Save and test with a dummy order.

With this rule, every new sales order automatically generates a proforma invoice, eliminating manual steps.

Step 4: Integrate Recurring Invoicing for Subscriptions

For businesses with subscription models—such as monthly equipment rental or recurring services—use Recurring Billing to streamline the process.

1. In Xero, go to Invoices > Recurring.
2. Create a new recurring invoice with the frequency (e.g., monthly).
3. Attach the proforma template to the recurring schedule.
4. Set the start and end dates.
5. Enable Send automatically and choose the email template.

When the cycle hits, Xero will generate a proforma invoice and email it to the client, ensuring timely reminders.

Step 5: Export and Customize with Third‑Party Tools

Sometimes Xero’s built‑in formatting isn’t enough. Use BillGenerate or BillFormat to export data and apply advanced styling.

• Export the invoice data as CSV.
• Import into the third‑party tool.
• Apply custom branding, color schemes, and additional fields.
• Export back to PDF and upload to Xero as the final document.

Step 6: Leverage Mobile Apps for On‑the‑Go Management

If you need to manage invoices from your phone, Xero’s mobile apps are invaluable. Additionally, the following apps extend functionality:

• Rent Invoice Billing App & Software
• RentNReady.com Online Wedding Cloth Dress on rent
• Proforma Invoice Bill App & Software
• Sales Invoice Bill Format App & Software
• Recurring Billing Software & App
• Rent Invoice Billing App for iPhone

Step 7: Audit and Compliance Checks

Regularly review your proforma invoices to ensure compliance with tax regulations:

• Verify GST/VAT codes.
• Check that the reference numbers follow the set format.
• Ensure all mandatory fields (customer name, address, invoice date) are populated.
• Run Xero’s audit trail to track changes.

Step 8: Train Your Team

Provide a quick training session covering:

• How to create a sales order.
• How the automation rule works.
• Where to find the proforma template.
• How to export to third‑party tools.

Encourage feedback to refine the process.

Brand Spotlight: RentInvoice

RentInvoice is a comprehensive rental management platform that seamlessly integrates with Xero. It offers:

• Real‑time inventory tracking.
• Automated rent billing.
• Customizable receipt templates.
• Barcode scanning for quick check‑ins.
• Detailed analytics for revenue forecasting.

By linking RentInvoice to Xero, you can push rental data straight into your accounting system, ensuring your proforma invoices reflect actual usage and inventory levels.

Frequently Asked Questions

• Can I use the same template for both proforma and final invoices? Yes, but you should add a “Final Invoice” label when converting.
• How do I set up recurring proforma invoices? Use Xero’s Recurring Invoices feature and attach the proforma template.
• What if my client needs a different currency? Xero supports multi‑currency; set the client’s currency in their contact profile.
• Is there a limit to the number of line items? Xero allows up to 200 line items per invoice.
• Can I add custom fields to the proforma? Yes, use Xero’s Custom Fields feature.
• How do I export the invoice to PDF? Click the PDF icon on the invoice screen.
• Can I track the status of a proforma invoice? Yes, Xero shows status as Draft, Sent, or Paid.
• Do I need to send a final invoice after the proforma? Typically, yes, once goods are delivered or services rendered.
• What if the client rejects the proforma? Update the line items and resend.
• Can I integrate with other accounting software? Xero offers API access for custom integrations.

Conclusion

Automating proforma invoices in Xero is a powerful way to streamline your billing process, reduce manual errors, and provide clients with clear, professional estimates. By following the steps above—setting up a template, automating with rules, integrating recurring billing, and leveraging mobile apps—you’ll save time and improve customer satisfaction.

Remember, the key to success lies in consistent testing and continuous improvement. Keep your templates updated, audit regularly, and stay aligned with tax regulations. With the right tools and workflow, your proforma invoicing can become a seamless part of your business operations.