How to Create Estimate? Proforma invoice
Quick Summary
An estimate is a non-binding price proposal sent to a potential client before work begins or an order is confirmed. It shows what the client will likely be charged, but it has no legal payment obligation and cannot be used for tax claims. It is used to get client approval on pricing before a final invoice is raised.
What Is This Feature
What It Is
An estimate is a non-binding price proposal sent to a potential client before work begins or an order is confirmed. It shows what the client will likely be charged, but it has no legal payment obligation and cannot be used for tax claims. It is used to get client approval on pricing before a final invoice is raised.
When To Use This Feature
When & Who
Used by freelancers, contractors, agencies, service providers, and any business that quotes prices before delivery. Sent when a client asks "how much will this cost?" before confirming an order.
Step-by-Step Flow
🔁 Flow
- Go to the Estimate window from the dashboard.
- Tap Create Estimate.
- Set the date (top-right).
- Add a new or existing client.
- Add products/services, apply taxes and discounts.
- Optionally customize (header, footer, notes, catalog image, payment options).
- Tap Preview → then Send via email or other method.
- Customize the email template if needed → click Send.
Fields Explanation
Key Fields
| Field | What It Means |
|---|---|
| Estimate Date | The date the quote is prepared. Used to track the age and validity of the quote. |
| Banking Details | The business's bank account information added so the client knows how to pay upon acceptance. |
| UPI QR Code | A scannable QR code linked to the business's UPI ID. The client can scan and pay instantly using any UPI-enabled app. |
| Pay Now Button (PayPal) | An embedded direct payment link added to the estimate for online payment. |
Underlying Concept (Accounting / Logic / Calculation)
Concepts
Estimate vs. Invoice: An estimate is a quote — tentative, no legal obligation. An invoice is a bill — legally binding, payment is due. A client can reject an estimate; once an invoice is issued, payment is expected.
Proforma Invoice: A document that looks like a real invoice but is issued before delivery of goods or services. It is used to request advance payments, for customs documentation in import/export, or to give the client a formal price confirmation. Estimates in SIM serve this purpose.
UPI (Unified Payments Interface): India's real-time digital payment system operated by NPCI. A UPI QR code lets clients pay directly to the business's bank account by scanning the code with any UPI app (Google Pay, PhonePe, Paytm, etc.).
Alternate Terms
Alternate Terms
| App Term | Also Known As |
|---|---|
| Estimate | Quote, Quotation, Price Quote, Proforma Invoice, Proposal, Price Offer |
| Banking Details | Bank Account Details, Payment Information, Beneficiary Details |
| UPI QR Code | Payment QR, Scan-to-Pay Code |