Convert Proforma Invoice to Invoice.

🔄 What Does “Convert to Invoice” Mean?

When a client has confirmed the scope and pricing on your Proforma Invoice, the next step is to finalize it — converting it into a real, accounting-impacting Invoice. This is a single click, but it carries significant weight: once the conversion happens, the amount enters your revenue records, GST returns, and client outstanding balance. The proforma itself remains locked as an audit trail.

This article covers everything you need to know before, during, and after the conversion — including edge cases the hub article does not detail.

📍 Screen: Billing → Proforma Invoice → open any proforma in View mode → the Finalized button appears in the aside panel header (top-right), visible only on the Details tab. You must have Invoice Create permission for the button to appear.

✅ Before You Convert — What to Check

The conversion is irreversible. Run through this checklist on the proforma’s Details tab before clicking Finalized:

💡 Tip: Switch to the Invoice View tab inside the proforma panel before converting. That tab shows you the branded, print-ready layout exactly as the client will see it — a final proof-read opportunity before anything is committed to accounting.

🖱️ How to Convert (Step-by-Step)

📍 Screen: Billing → Proforma Invoice → open the proforma → Details tab (or Invoice View tab) → header button area (top-right of the aside panel).

1. Open the proforma in View mode. Confirm the status chip in the header reads Draft.
2. In the aside panel header (top-right), click the Finalized button (visible only if you have Invoice Create permission and the proforma has not already been converted).
3. A confirmation dialog appears: “Are you sure to convert into Invoice?” — click OK to proceed or Cancel to go back.
4. Project Invoice only — Estimated Cost alert: If the proforma is linked to a project and the invoice amount (combined with existing invoiced amounts for that project) would exceed the project’s Estimated Cost, a second confirmation appears: “You are trying to create invoice more than estimated project amount. Do you want to continue?” You can proceed or cancel at this point.
5. On success, the system navigates you to Billing → Invoice and automatically opens the newly created Invoice in View mode.

📌 Permission requirement: The Finalized button is only shown when you have the Create permission on the Invoice module — not just the Proforma Invoice module. If you can see the proforma but cannot see the Finalized button, ask your administrator to grant you Invoice Create access.

📋 What Happens During Conversion

When you click OK on the confirmation, the following takes place in one atomic operation:

• A brand-new Invoice record is created with its own unique Invoice Number (following your company’s financial-year invoice sequence — separate from the proforma’s number).
• All billing items — Title, HSN Code, Quantity, Price/Unit, Net Amount, and all CGST / SGST / IGST percentages — are copied over exactly as entered on the proforma.
• Any attached documents (contracts, scope sheets, PDFs) are carried into the new Invoice automatically and marked as already uploaded.
• The Client (and Project, if this was a Project Invoice) is linked to the new Invoice.
• The company details — name, address, GSTIN, state, and logo — are snapshot onto the Invoice at this moment. Even if you later update your company profile, the Invoice PDF will always show the details as they were on the day of conversion.
• The Invoice’s payment status is set correctly (UNPAID by default, as no payment has been received yet).
• The proforma’s status flips to Finalized and a Converted chip appears in the proforma header.
• For Catalog items with Count Quantity enabled, the invoiced quantities are tracked against stock.

📌 Invoice number sequence: Invoice numbers follow the financial year sequence and are generated using a centralized counter — they are multi-tenant safe and will not produce duplicates even if multiple users convert proformas simultaneously.

🔍 After Conversion — The Proforma Side

Once a proforma has been converted:

• The Finalized button in the header is replaced by a View Invoice button. Clicking it navigates you directly to the resulting Invoice record.
• The proforma’s status chip changes from Draft to Finalized, and a Converted chip is added in the aside header.
• The Edit and Delete buttons are no longer available on the proforma. It is locked permanently for audit purposes.
• The proforma remains visible in the Billing → Proforma Invoice list as a historical record.

⚠️ One-way conversion: There is no “undo” for finalization. If you need to correct something — wrong amount, wrong client, wrong date — you must work on the resulting Invoice directly, or (for major corrections) cancel the Invoice and create a fresh one. The proforma itself cannot be reverted to Draft.

🔍 After Conversion — The Invoice Side

The newly created Invoice opens automatically in View mode. From this point forward:

• The Invoice is the source of truth for revenue, GST, and client outstanding balance. The proforma no longer affects any of these figures.
• You can record payments, apply Credit Notes, track payment status (UNPAID → PARTIAL → PAID), and generate reminders — all from the Invoice module.
• The Invoice can be emailed (branded PDF), shared via WhatsApp, or printed using the action buttons in the aside header.
• If any adjustment is needed (over-billing, wrong quantity, return), raise a Credit Note against the Invoice from the Invoice module. See the Credit Note Guide for the full process.

💡 Tip: After converting, open the Invoice’s Invoice View tab to check the branded PDF output — specifically verify the GST split (CGST+SGST or IGST), the company details block, and the currency symbol. These are all frozen from the conversion moment and will appear exactly this way on every future print.

⚠️ Edge Cases and Common Questions

The “Finalized” button is not visible

The Finalized button only appears when:

• You are on the Details tab (not Attachments, Logs, or Invoice View tab) and the record is in View mode — it is not visible in Edit mode.
• You have the Invoice → Create permission. Contact your administrator if the button is missing.
• The proforma has not already been converted. If it has, the button is replaced by View Invoice.

Estimated Cost alert on Project Invoices

If you are converting a Project Invoice and the combined invoiced amount for the project (existing invoices + this one) exceeds the project’s Estimated Cost, a warning confirmation appears before the Invoice is created. You can still proceed — this is a warning, not a hard block. If you see this alert unexpectedly, verify the project’s Estimated Cost under Project → Edit.

Foreign currency proformas

If the client’s billing currency differs from your company’s primary currency, the Today’s Currency Rate entered on the proforma is frozen onto the Invoice at the time of conversion. The system never re-converts at runtime — reports and accounting always use the rate that was entered on the proforma. Make sure the rate is accurate before converting.

Documents not showing on the Invoice after conversion

Proforma documents are carried into the Invoice automatically and are treated as already-uploaded files. They appear on the Invoice’s Attachments tab. If you do not see them, check whether the files were properly saved on the proforma first (proforma Attachments tab).

Catalog item stock — does conversion deduct stock?

For Catalog items with Count Quantity (previously called “Track Inventory”) enabled, invoicing a quantity records a stock movement. The stock balance updates when the Invoice is created. However, unlike older versions of the system, stock-out does not block conversion — you can invoice a Catalog item even if stock has reached zero. The only limit enforced is the item’s Max Qty/Invoice cap (if set), which restricts the quantity on a single invoice line.

GST split looks wrong on the Invoice

The CGST+SGST vs. IGST split on the Invoice is copied directly from whatever was entered on the proforma. The system determines the correct split automatically when you select the Client (based on whether the client’s state matches your company’s state), but you can override it. If the split is wrong on the resulting Invoice, it means the proforma had the wrong tax values. You cannot correct tax percentages on an existing Invoice — you would need to cancel the Invoice and raise a new one, or issue a Credit Note for the difference.

Invoice Date constraint

The Invoice Date cannot be set to a future date on the proforma — it is capped at today. Additionally, the system validates that the Invoice Date is not earlier than the date of the last invoice already created for that sequence. If you receive an error such as “The Invoice Date cannot be earlier than the last invoiced date”, you need to update the Invoice Date on the proforma to a date that is in sequence before converting.

📌 Key Points Summary

• One-way, permanent: Finalization cannot be reversed. The proforma is locked for audit; all further action happens on the Invoice.
• Requires Invoice Create permission: The Finalized button is gated on your Invoice module permission, not just Proforma Invoice permission.
• Everything carries over: Billing items, tax percentages, documents, client/project linkage, and company details are all copied at the moment of conversion.
• Currency rate is frozen: Foreign currency invoices use the rate entered on the proforma — it is never recalculated later.
• Estimated Cost alert is a warning, not a block: You can convert even if the total exceeds the project estimate, but the system asks for confirmation.
• Stock-out no longer blocks conversion: Catalog stock can be zero; only the Max Qty/Invoice cap can restrict a line item.
• Unique invoice number: The resulting Invoice gets a fresh number in the financial-year sequence — separate from the proforma’s own number.
• Navigate back: After conversion, use the View Invoice button on the proforma (now shown in place of Finalized) to jump directly to the Invoice at any time.

Related guides

• Proforma Invoice — Full Guide
• Invoice Guide — recording payments, cancellation, credit notes
• Credit Note Guide — adjusting a converted Invoice
• Recurring Invoice Guide — schedule-based invoice generation