The delivery note lists the product description and quantity dispatched to the customers. It may be placed inside the shipment or sent by delivery staff.

This note’s purpose is to facilitate customers’ verification of the description and quantity of the goods dispatched by the seller.

This note is not expected to list the product price but only the quantity and description. The product price is copied from the sales invoice received after the delivery .

The same note is signed by the customer and given back as acknowledgment for the goods received by them. It helps the seller prove that the goods were delivered, and they have all the rights to send bills and collect funds against delivery.

The customer may decide to keep a copy of the delivery note and use it as a goods received note. An alternative is to generate a separate goods received note from scratch.  

Purpose of the delivery note

The prime purpose of a this note is to create evidence that a specific quantity of goods was dispatched to the customer. This evidence can be used to generate bills and collect payment from customers.

Uses of delivery note

Following are some of the uses of delivery notes.

1. Basis to keep record and update inventory—The details enlisted in the delivery note act as a reliable record and basis to update the inventory record. For instance, any addition to the inventory must be backed by the delivery receiving note.
2. Enhanced accountability and transparency—Adequate use of delivery and receiving notes helps introduce a culture of accountability and transparency. For instance, staff receiving inventory from suppliers must ensure the quantity and quality of the goods are in line with the purchase order/agreement.
3. Acts as evidence– The seller uses this document as evidence to generate a sales invoice and collect funds from the customer.
4. Legal compliance– Delivery notes are considered essential documents in terms of procedural compliance and shipment processes.
5. Payment processing– It’s considered an essential document from payment perspective.

Difference between the delivery note and goods receive note.

Purpose– The purpose of the delivery note is to prove that the goods were delivered to the customer and the seller has the right to send bills and collect funds. The purpose of the goods received note is to acknowledge the quantity & description of goods received. This can be done by comparing the notes of goods received with the original purchase order/agreement.

Issuing party—The seller issues a Goods delivery note and sends it to the customer. On the other hand, the customer issues a goods received note for internal use.

Content—The Goods delivery note includes content like seller and buyer information, product description, product quantity, and dispatch date, while the goods received note includes details like product information, conformity with the purchase order/agreement, and acts as the warehouse document.

Date—The goods dispatch note is prepared on the date of dispatch, while the goods received note contains the date of goods received.

The legal status of the delivery note

The legal status of a this note is determined by applicable regulations, context, and whether it was used in conjunction with other sales and delivery documents.

Another essential aspect is the customer’s signature on the note, which increases the legal weight of the evidence.

Conclusion

The delivery note is a sales document generated by the seller to enlist the description and quantity of the goods dispatched to the customer.

This document is signed by the customer and given back as acknowledgment that a specific quantity and quality of goods was received. The seller has all the rights to send a bill and collect payment after this note.

There are multiple uses for delivery notes, such as acts as a basis to keep records & update inventory, acting as evidence, legal compliance, enhanced accountability & and transparency, payment processing, etc. 

The sole delivery note as legal evidence is not sufficient. However, it can be used as a strong piece of evidence in conjunction with other sales documents like agreements, sales invoices, relevant correspondence, etc.