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July 4, 2025
14 min
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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:

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:

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:

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:

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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Order Number and Delivery Note Number

Each delivery note should include both an order number and a unique delivery note number. These reference numbers make it easy to:

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:

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:

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:

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.

Feature Delivery Note Goods Received Note (GRN)
Created By Seller Buyer
Purpose Confirms goods were sent and received Confirms goods were received as expected
Timing Sent with the shipment Created after inspection
Used By Both buyer and seller Internal use only
Includes Item details, quantity, and delivery date Item condition, discrepancies, acceptance
Legal Use Serves as proof of delivery Supports inventory and payment records
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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.

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.

If you're looking for an easier way to manage your invoices, Tofu’s invoicing app helps you generate professional, accurate invoices in seconds, streamlining your billing process from start to finish.

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:

Invoice: Proof of Payment Obligation:

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.

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
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:

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:

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.