What is a Delivery Note? | Definition, Function, and Example for Business

The delivery note is essentially a commercial document that accompanies a shipment of goods, it outlines the description, and quantity of the goods delivered. A copy of the document, which is to be signed by the recipient, is then returned to the seller/provider as proof of delivery.

If you are the owner of a retail business, when supplying goods to customers, it is highly recommended that you provide a document for the goods. This document is not a mandatory requirement, but it can make your business look more professional and appreciated by many customers. In the future, this document can help recipients check which items have been shipped and allow them to check for lost items.

What is a Delivery Note?

Source: MNews

The delivery note is an important document that contains all the goods included in the shipment, it can also be referred to as a delivery note or receipt. This document is included with the shipment and lists the number of products included in the shipment, but does not include any prices, such as the price of goods. Then the seller will receive a copy of the invoice as proof of delivery.

This shipping document is very useful because the supplier can ensure that everything goes according to the delivery plan. After the signing and return, it will be an indicator of customer satisfaction and they receive the package. 

Also Read: Logistics Definition | Challenges and Solution

Types of Delivery Note

Delivery of goods 

This document had the purpose to detail information on the goods in the list according to the order, using a special writing format to make buying and selling transactions. Usually required by institutions such as companies as archive documents.

Sale of goods

Divided into two:

• Credit sales

Sale and purchase transactions with a credit payment system will make this letter. The manufacture is based on a letter of order or order to be proof of the goods release chart. In particular, the value of the number of goods does not change and cannot be changed, because it is adjusted to the quantity that has been written in the order letter.

• Cash sales

Based on the name, we only make this letter to specifically record evidence of buying and selling transactions in which payment is in cash and is not dependent on sales order performance.

Purchase return 

According to the purchase return transaction or the return of goods that the customer purchase, which purchase of goods they make in advance. The value of the number of goods that they have purchased is not changeable, because the quantity value in the purchase return already includes it.

Delivery Note’s Function: 

Documents ensure the legality of shipping large quantities in the good’s shipping process. Here are some of its functions;

As the official document of the shipping company

One of its functions is an official document to facilitate expeditions for the bureaucracy in certain areas, for example during checks carried out by security officers and the police. 

Valid proof of delivery

In addition to functioning as an official document, it is also useful to document that the vendor and shipper ratify the transport of the goods to the truck and send it to the destination. “Effective documentation is the backbone of a successful logistics operation; it provides certainty and transparency in every transaction,” adds Milosz Krasinski.

Letter of statement 

Delivery notes can give information or descriptions that we can find in detail and clarity on the goods to send. Contains detailed information on the goods sent by the shipper (the shipper). These details include the name of the item, the quantity of the item, and the price of the item.

Delivery Note Template

Although goods received notes are optional, they should still follow a certain structure, regardless of whether you use delivery note software or create your delivery note template with the word. There must be clear communication between both the sender and the receiver. 

• • • The delivery note must therefore show:
    • The name and contact details of the seller
    • The name and contact details of the customer
    • The date of issue
    • The date of delivery
    • A description of the goods contained in the order
    • The quantity of each product is included in the shipment.
    • The delivery note may also optionally require the receiver’s signature (or stamp) which indicates the receiver had received the package.

Also Read: Role of ERP in Logistics Industry for Singapore Company Growth

Delivery Note Sample

Below is an example of a delivery note. Delivery notes have a similar format to invoices but will be titled ‘Delivery Note’. They have a unique number that will help you keep your documents in order. 

So why isn’t it the same as an invoice? It’s different from an invoice because it records a delivery of a service or goods the buyer receives, instead of payment. Because it’s not a legal document, you must state the note just like the invoice when issuing the corresponding document.

Source: sumup 

Conclusion 

In essence, a delivery note is an official document that is very useful for your business company to make it look professional. You can find the creation of this letter in the section on creating good logistics management and management for your business.

If you want to automatically create delivery notes with different formats, you may want to consider using ERP software or transportation software.

HashMicro is the best Transportation Software provider for business companies in Singapore. The company creates the Transportation Management System to manage their logistics by simplifying the process of transportation, delivery of goods including travel documents, to revenue analysis quickly and accurately. Get free demo now!