Defferences Between Invoice and Delivery Note
Defferences Between Invoice and Delivery Note
| Invoice note and delivery note |
What is an Invoice Note?
An invoice note is sent by a supplier to a buyer informing him that the goods have been despatched. The advice note enables the buyers storekeeper to check the contents of the parcel and record in his stores record book the goods that have arrived. In most cases, however, the advice note is not necessary because an invoice can be sent as soon as the goods are ready.
What is an Delivery Note?
On the other hand, a delivery note is a document that merely gives a list of goods without showing their prices. It is sent by the buyer in place of the invoice for checking the goods without learning their cost price. Delivery notes are normally used when goods are delivered by road or by post. The driver is given two copies a copy is given to the goods received section and the other copy is signed by the purchasing officer and returned to the supplier.
The Difference Between Invoice note and Delivery Note
An invoice and a delivery note are two separate documents used in the process of selling goods or services. Here are the key differences between them:
Invoice:
An invoice is a commercial document issued by the seller to the buyer.
It specifies the details of the goods or services sold, including their quantity, price, and any applicable taxes.
An invoice serves as a request for payment and outlines the terms of the sale, such as payment due date and payment methods.
It also typically includes the seller's contact information, payment instructions, and a unique invoice number for tracking purposes.
Delivery Note (also known as a Packing Slip):
A delivery note is a document that accompanies a shipment of goods when they are delivered to the buyer.
It serves as proof of delivery, confirming that the goods specified in the invoice have been received by the buyer in the expected condition.
A delivery note includes information about the contents of the package, such as item descriptions, quantities, and any special handling instructions.
Unlike an invoice, a delivery note does not include payment information or payment terms. Its primary purpose is to assist in the reconciliation of the received goods with the original order.
summarily, while an invoice is primarily a request for payment and a record of the sale, a delivery note is a document used to confirm the receipt of goods and their condition. Both documents play distinct roles in the sales and logistics process.
How to Prepare an Invoice Note?
To prepare an invoice, you can follow these steps:
Header Information:
Include your company name, address, and contact details.
Add the recipient's information, including their name, address, and contact details.
Include a unique invoice number and the invoice date.
Itemized List:
List the products or services provided.
Include a description of each item, quantity, unit price, and total price for each item.
Calculate subtotals for individual items.
Calculate Totals:
Sum up the subtotals to calculate the total amount due.
Include any applicable taxes or discounts, if applicable.
Provide the final amount to be paid.
Payment Terms:
Clearly state the payment terms, such as the due date and accepted payment methods.
Include any late payment fees or discounts for early payment.
Additional Information:
You can include any special instructions, terms and conditions, or notes relevant to the transaction.
Footer Information:
Include a thank you message for the customer.
Reiterate your contact information for any questions or concerns.
Date and Sign:
Sign and date the invoice to make it official.
Save a Copy:
Keep a copy of the invoice for your records.
Remember to customize the invoice to your specific business needs and legal requirements in your area. You can also use accounting software or templates to create professional invoices easily.
How to Prepare a Delivery Note?
To prepare a delivery note, follow these steps:
Header Information: Include your company's name, address, contact information, and logo at the top of the document.
Delivery Note Number: Assign a unique identification number to the delivery note.
Date: Include the date of the delivery note issuance.
Recipient's Information: Include the name, address, and contact details of the recipient or customer.
Delivery Details: Provide details of the delivery, including the date and time of delivery, delivery address, and any special instructions.
Item Description: List the items being delivered, including their names, quantities, and any relevant product codes.
Unit Price: Mention the unit price of each item, if applicable.
Total Amount: Calculate and display the total amount for each item by multiplying the quantity by the unit price.
Subtotal: Calculate the subtotal of all items before any taxes or discounts.
Taxes and Discounts: If applicable, include any taxes or discounts and calculate the final total.
Payment Information: Specify the payment terms and methods accepted.
Signature and Date: Provide space for the delivery person to sign and date the document.
Notes: Include any additional information, such as return policies or terms and conditions.
Terms and Conditions: If necessary, list the terms and conditions of the delivery.
Additional Copies: Prepare multiple copies for your records, the recipient, and any other relevant parties.
Distribution: Ensure that the delivery note is given to the recipient upon delivery.
Remember to customize the delivery note to fit your business's specific needs and branding. It serves as a record of the goods delivered and can be helpful for both your company and the recipient for tracking and accounting purposes.
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The Relationship Between Invoice Note and Delivery Note
Invoice notes and delivery notes are two distinct documents used in the process of buying and selling goods, particularly in a business-to-business (B2B) context. Here's an overview of the relationship between them:
Invoice Note:
An invoice note, commonly referred to as an invoice, is a formal document issued by a seller to a buyer. It provides a detailed account of the products or services sold, their quantities, prices, and any applicable taxes or discounts.
The primary purpose of an invoice note is to request payment from the buyer for the goods or services delivered.
It typically includes information like the seller's contact details, the buyer's contact details, invoice number, payment terms, and a breakdown of the transaction.
Delivery Note:
A delivery note, also known as a packing slip or delivery receipt, is a document issued by the seller at the time of shipment or delivery of goods to the buyer.
The delivery note serves as a record of what has been delivered. It includes details about the items shipped, their quantities, and sometimes their condition.
Unlike the invoice, the delivery note is not a request for payment. It's mainly used for tracking and verification purposes, both by the seller and the buyer.
The relationship between the two documents is as follows:
A delivery note is typically prepared and included with the goods being shipped to the buyer. It serves as a physical or digital record of what is inside the shipment.
The invoice note, on the other hand, is sent separately or after the delivery, and it requests payment for the goods or services provided. It references the delivery note to confirm that the products have been delivered as per the agreed terms.
In summary, the delivery note and invoice note are related in that the information on the delivery note is often used as a reference when creating the invoice to ensure accuracy in billing. However, their primary purposes and timing in the sales process are distinct. The delivery note confirms what was delivered, while the invoice note requests payment for those delivered items.
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