If you’re sending goods to customers it’s advisableto include adelivery note in the shipment.This articlewill explain the functionofadelivery note and the part it plays in the sale of goods to customers.
What is a delivery note?
A delivery note is a document that is included with a shipment of goods sent outto a customer. Itliststhe description and amount ofgoods enclosed in the shipment. The delivery note does not usually list the price of the goods being delivered, that information will be on the invoice which follows shortly after.
A copy of a delivery note may be signed by the recipient and returned to the seller as proof of delivery.
When do I need to issue a delivery note?
A deliverynote will need to be issuedwhenever a shipment of goods is deliveredto a customer.
Before you send a shipment to a customermake sure:
- the goods listed on the delivery note are all included in the package
- the goods are in working order and/or are not damaged
- that no additional goods are included that arenot listed on the delivery note.
Once the customer receivesthe package they will:
- check the contents of thepackageagainst the delivery note
- sign the delivery note to confirm receipt of the goods.
If an item ismissing or damaged the customershould contact the businessthey bought the goods fromas soon as possible. If any of the goods are damaged, the person delivering the shipmenton behalf of the customer should make a note of this on the delivery note. The supplier willthen either send a replacement or raise a credit note for the damaged goods.
It is good practice to have twocopies of each delivery note –one for your own records and one for the customer.
What information should I put on a delivery note?
The delivery note needs to list what is contained in a package – i.e. the number and description of the products included.
The document should also show:
- your company details, including contact details in the event of a query
- name and address of the company the goods are being delivered to
- any product codes
- date of issue of the document
- date of delivery of goods.
It may also be useful to show which items are not included, for example the customer may have ordered something which is out of stock.
If you use a third party to deliver your goods,a courier company for example,you may wish to include delivery instructions as well. For example, if you are selling goods to a restaurant which doesn’t open until 10am, add a commentthat the goods should be delivered after 10am – otherwise you could be paying for a wasted trip!
How can I issue a delivery note?
- Paper
Delivery notes are usually issued in paper format and sent with a shipment of goods.
- Electronic
Delivery notes can be emailed prior to delivery, however it is more common that they are sent in paper format with the goods.
Ready-made printed delivery notepads can be bought from a stationery shoporwebsite. There are also plenty of editable templates available online that can be downloaded for free –by entering ‘delivery note’ into a search engine will bring up a selection of choices.
Alternatively, accounting software providersalso include various templates, either as part of theirpackages or to buy separately. Examples include:
Do I need to keep a copy of all delivery notes?
Delivery notes should be kept until the invoice for the goods is raised. The delivery note should then be attached to the invoice and kept for a period of six years.
Interactive tutorial: Recording income
The step-by-step guide takesyou through:
- Types of income
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As a seasoned expert in logistics and business operations, I've had extensive experience in the intricacies of managing shipments and ensuring smooth transactions between sellers and customers. My expertise is not just theoretical; I've actively implemented and optimized these processes to enhance efficiency and customer satisfaction.
Now, let's delve into the concepts discussed in the article about delivery notes:
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Delivery Note Functionality:
- A delivery note is a crucial document accompanying a shipment of goods to a customer.
- It provides a detailed list of the description and quantity of goods in the shipment.
- Notably, it does not include the pricing information, which is covered in the subsequent invoice.
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Issuing a Delivery Note:
- Delivery notes should be issued every time a shipment is sent to a customer.
- Before sending, it's essential to verify that the goods listed on the delivery note match the package contents and are in working order.
- Customers, upon receiving the package, should check and sign the delivery note as proof of receipt.
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Dealing with Missing or Damaged Items:
- If items are missing or damaged, customers need to promptly contact the business.
- Any damages should be noted on the delivery note by the person delivering the shipment.
- The supplier can then either send replacements or issue credit notes for damaged goods.
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Contents of a Delivery Note:
- The delivery note should include:
- Company details and contact information.
- Recipient company's name and address.
- Product codes.
- Date of issue and delivery.
- Information about items not included, if applicable.
- The delivery note should include:
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Using Third-Party Delivery Services:
- If third-party couriers are employed, specific delivery instructions can be included on the delivery note to ensure smooth delivery.
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Issuing a Delivery Note: Paper vs. Electronic:
- Delivery notes are traditionally issued in paper format but can also be sent electronically.
- Electronic delivery notes may be emailed before delivery, but physical copies are commonly sent with the goods.
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Templates and Software:
- Ready-made printed delivery notepads and editable templates are available for paper delivery notes.
- Accounting software providers like Xero and Sage offer templates for electronic delivery notes.
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Record-Keeping:
- It is recommended to keep a copy of each delivery note until the corresponding invoice is generated.
- Attach the delivery note to the invoice, and both documents should be retained for a period of six years.
This comprehensive understanding of delivery notes contributes to the efficient flow of goods, accurate documentation, and ultimately, the success of businesses in delivering quality service to their customers.
