Delivery Note: What It Is and How to Use It Effectively
Discover the purpose and importance of delivery notes, how they differ from other documents, and how they support smooth shipping and invoicing.
When it comes to shipping goods, clear documentation is essential, and that’s where a delivery note comes in. This simple but powerful document accompanies a shipment and confirms exactly what was sent, how much, and in what condition.
A well-prepared delivery note helps businesses stay organized, manage inventory more efficiently, and provide proof of delivery in case any issues arise.
Whether you're a small business owner, freelancer, or logistics manager, understanding how to use delivery notes correctly can streamline your operations and protect your bottom line.
Key Takeaways:
Delivery notes confirm goods were shipped and received.
They support inventory tracking and dispute resolution.
There are different types for various business needs.
Key details include items, quantity, and signatures.
Delivery notes are essential shipping documents.
What Is a Delivery Note? Definition and Purpose
A delivery note is a document that accompanies a shipment of goods and outlines what has been delivered. It serves several important functions:
Details included: Item descriptions, quantities, and sometimes the condition of the items
Purpose: Used by both sender and recipient to confirm that the order arrived as expected
Proof of delivery: The recipient’s signature confirms the goods were received in the correct quantity and condition, helping resolve any disputes
The main purpose of a delivery note is to serve as proof of delivery. Once the recipient signs it, the document confirms that the goods were received in the correct quantity and condition. This step is crucial for resolving any potential disputes or issues with the shipment.
For small business invoicing, delivery notes also play a role in keeping operations smooth and professional. They help bridge the gap between shipping and billing, ensuring that what's been delivered matches what will appear on the invoice.
While delivery notes are not invoices, they are part of the broader billing cycle, especially in businesses shipping physical goods. Knowing the difference between types of invoices (proforma invoices, final invoices, commercial invoices) and supporting documents like delivery notes helps maintain clear, accurate records.
Using delivery notes adds:
Transparency and accountability in your shipping process.
Better customer relationships.
More efficient inventory management.
Key Components of a Delivery Note
To ensure a smooth delivery process, it’s essential to understand the basic elements that make up an effective delivery note. This document serves as a critical checkpoint between businesses and their customers, confirming that the right goods have arrived at the right destination.
Whether you're using a delivery note as a checklist or as a legal record, including these key components ensures accuracy and professionalism.
Sender and Recipient Details
A delivery note should clearly list both the sender’s and the customer’s contact information. This includes:
Business names
Addresses
Phone numbers or emails
Including company branding—such as your company logo, colors, and design elements—adds a professional touch. It helps your business look polished and trustworthy, especially when sending documents to new clients or customers.
Accurate details help verify who’s involved in the transaction, support communication if issues arise, and ensure the shipment reaches the correct recipient.
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Each delivery note should include both an order number and a unique delivery note number. These reference numbers make it easy to:
Match the delivery to a specific order
Track shipments and documents
Cross-reference with invoices or returns
They also help in identifying records during audits or customer service interactions.
Description of Goods Included in the Delivery
Clearly list the goods included in the delivery, with detailed descriptions such as:
Quantity of items
Product names or SKUs
Any relevant codes or variations (like size or color)
This allows both sender and recipient to verify that the shipment matches expectations and helps resolve discrepancies quickly.
Delivery Date and Recipient Signature
The delivery date and the recipient’s signature confirm the handoff was completed. This signature acts as proof that the delivery was received in good condition and on time. It's a key part of the documentation process for accountability.
Delivery Note vs. Goods Received Note: What’s the Difference?
While a delivery note and a are often used in the same transaction, they serve very different roles, and understanding that difference is key to maintaining clear, accurate records.
The delivery note is prepared by the seller and sent with the goods. The goods received note is created by the buyer once the goods have been delivered and checked.
Purpose and Use
The delivery note outlines the goods included in the delivery and is typically signed by the recipient to acknowledge receipt. It's a document used during the issue and delivery process.
In contrast, the goods received note is an internal document used by the receiving team to:
Confirm that the goods delivered match the original order confirmation.
Note any discrepancies, damages, or missing items.
Trigger updates in stock and accounting systems.
While the delivery note is external and shared with both parties, the GRN is usually kept for internal use to document what was actually accepted into inventory.
Legal & Operational Impact
The signed copy of the delivery note may serve as proof of delivery, while the GRN becomes part of the buyer’s internal records for reconciliation, inventory tracking, and initiating payment.
In essence:
The delivery note initiates the handoff.
The goods received note completes the verification.
Both are important for businesses that regularly ship and receive physical goods, especially in systems where products are shipped from one location to another or through multiple checkpoints.
Delivery Note vs Invoice: Understanding the Differences
While both delivery notes and invoices are critical documents in business transactions, they serve very different purposes. Understanding how each functions helps businesses maintain accurate records, streamline operations, and stay on top of their billing cycle.
Delivery note: Issued by the seller to confirm that goods were shipped and received.
Invoice: Issued by the seller to request payment for the goods or services provided.
What’s the Difference?
The main difference between a delivery note and an invoice lies in their purpose. A delivery note confirms that goods have been physically delivered to the recipient. It typically includes the sender and recipient’s contact information, a description and quantity of the items, the delivery date, and the recipient’s signature. This document serves as proof that the goods arrived in the expected condition and quantity.
An invoice, on the other hand, is a formal request for payment. It outlines what was sold, including item or service descriptions, unit prices, totals, payment terms, and due dates. While the delivery note focuses on the shipment itself, the invoice is centered on billing and financial transactions, both essential components of a smooth and transparent business process.
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Legal & Operational Impact
Understanding the legal and operational differences between delivery notes and invoices is crucial for protecting your business and ensuring smooth workflows.
Delivery Note: Proof of Delivery:
Legally, a signed delivery note serves as evidence that goods were physically delivered to the correct party and received in the stated condition.
It helps resolve disputes related to missing, damaged, or incorrect shipments by providing a legal record of what was handed over.
Operationally, it acts as a checkpoint in the supply chain, confirming that goods have moved from one location to another and been accepted.
Invoice: Proof of Payment Obligation:
An invoice is a financial legal document that creates an obligation for the buyer to pay. It specifies what is owed, payment terms, and deadlines.
It is critical for accounting, tax reporting, and enforcing payment contracts. Without a valid invoice, collecting payment can be legally challenging.
Operationally, invoices trigger the billing cycle—from payment processing to revenue recognition and financial reconciliation.
Feature
Delivery Note
Invoice
Created By
Seller
Seller
Purpose
Confirms physical delivery of goods
Requests payment for goods or services
Timing
Sent with the goods
Sent after or with delivery
Used By
Both the seller and the customer or another business
Buyer and seller
Includes
Name and contact info, description and quantity of goods, delivery date, and signature
Itemized list, unit prices, payment terms, and due dates
Legal Use
Serves as proof of delivery
Delivery Notes Are Important for Businesses
Delivery notes play a vital role in helping businesses manage shipments and maintain accurate records. Beyond simply confirming delivery, they support key operations like inventory control, legal protection, and shipping compliance.
Area of Importance
Description
Benefit to Businesses
Inventory Management
Tracks goods as they move between locations
Ensures efficient stock control and minimizes losses. Businesses with accurate delivery documentation see a 15–20% improvement in inventory turnover rates.
Proof of Delivery
Acts as a legal confirmation that the goods reached the customer
Helps resolve disputes quickly and supports timely payment. 75% of companies report that proof of delivery (POD) helps significantly reduce delivery disputes.
Shipping Documentation
Serves as an official document for customs and transport
Simplifies logistics and ensures compliance with regulations. Around 60% of supply chain professionals say that proper shipping documentation, like delivery notes, simplifies customs clearance and streamlines logistics.
Using delivery notes effectively helps businesses maintain transparency in the issue and delivery process, keeps inventory accurate, and provides a clear trail to solve any shipping issues.
In summary, delivery notes are indispensable tools for businesses. They not only improve operational efficiency but also provide peace of mind by ensuring shipments reach the right hands and are properly documented.
Legal and Compliance Considerations for Delivery Notes
For businesses, understanding the legal importance of delivery notes is essential. These documents serve as legally binding proof that goods have been transferred from one party to another.
To ensure delivery notes are valid, they must include key details such as what was delivered, the delivery date, and the signature of the person receiving the goods. Accurate record-keeping is crucial for tracking transactions and protecting both parties in case of disputes.
Businesses also need to comply with laws regarding the retention of delivery note records. Keeping these documents for the required period helps avoid legal penalties and supports audits or investigations.
Best practices for legal compliance with delivery notes include:
Ensuring all delivery notes are fully and correctly completed, including recipient signatures.
Maintaining organized records of delivery notes in line with legal requirements.
Regularly reviewing and updating internal policies to reflect changes in delivery note regulations.
By prioritizing proper documentation and compliance, businesses minimize legal risks and maintain smooth, reliable operations.
Final Thoughts: Using Delivery Notes Effectively
To maximize the benefits of delivery notes, it’s essential to follow best practices consistently. Using a well-designed template ensures each delivery includes all key details — who sent the goods, who received them, what was delivered, when it happened, and a signature confirming receipt. This attention to detail reduces errors, improves accountability, and leads to happier customers.
But while delivery notes help you track shipments, managing your small business invoicing efficiently is just as crucial for smooth operations and cash flow. That’s where Tofu’s professional invoicing app comes in.
With Tofu, you can:
Create and send professional invoices quickly, reducing your billing cycle and getting paid faster.
Manage all your invoices and delivery records in one place, keeping your business organized and compliant.
Personalize invoices with your company logo and branding to impress customers.
If you’re ready to streamline your invoicing and elevate your business efficiency, try Tofu Today!
FAQ
What are the different types of delivery notes used in business?
There are several different types of delivery notes, including standard delivery notes, sale of goods delivery notes, and customized notes for specific industries. Each type serves the common purpose of confirming goods have been shipped and received, helping you keep accurate shipping records.
Why is including the sender's and receiver’s names and contact information important on a delivery note?
Including the name and contact details of both the sender and the receiver is a common practice. It ensures clear communication, helps resolve any delivery issues, and verifies that goods were delivered to the correct parties, whether that’s a customer or another business.
Can I print my delivery notes directly from invoicing software?
Yes! Many modern invoicing tools allow you to easily print delivery notes, saving time and ensuring your shipping documents are consistent and professional-looking.
How does a delivery note differ from other shipping documents?
A delivery note is a document that confirms the receipt of goods by the customer, listing the items delivered and their condition. It differs from other shipping documents like invoices or packing lists by focusing on delivery confirmation rather than payment or inventory.
What information should I include about the expected delivery on a delivery note?
Including the expected delivery date and the shipping method helps manage customer expectations and provides a clear timeline for shipment tracking. It’s also a good idea to use a detailed description of the goods to maintain transparency.
How does sale of goods delivery notes help businesses?
Sale of goods delivery notes provide proof that products have been delivered to the customer as agreed. They support inventory management, reduce disputes, and complement invoicing by verifying that the goods related to the sale have reached the buyer. In case goods are returned to the seller, these notes help track the return process.
How do I create a delivery note that’s effective for my business?
To create a delivery note effectively, includeall key details like sender and receiver information, item descriptions,quantities, expected delivery date, and space for the recipient’s signature.Using a template or invoicing software can help standardize and streamline thisprocess.