The importance of Delivery notes shouldn’t be underestimated. An individual knows how to acquire the products that he needs since the beginning of history.
After that, other measures were taken to establish this change in commercial transactions. Some of the methods are the inclusion of sales notes, etc. It is needless to say that business documents play a huge role in controlling transactions.
They also help in maintaining transparency when it comes to the seller-consumer relationship. For instance, invoices are important documents that shouldn’t be overlooked. If you own a business, you must know its importance already.
They must be presented to the primary collection agency of the state. It is extremely important for employees too. Other important documents are the tax documents.
Some of the documents that you get are receipts, checks, letters, delivery notes, and vouchers. Each is different from the other, with different purposes. They complement each other and thus, you have to learn about each of them.
In this blog, we are going to talk about the notes, the definition of delivery notes, the concept behind them, etc. You must not confuse it with an invoice. You have to understand the definition of them all along with their purpose.
A delivery note has a lot to do with sales. A delivery note is a commercial document demonstrating the delivery and reception of the service or good. Notably, the term delivery note comes from the Arabic word Albán and is translated as “supporting document”.
A sales note is a document whose main objective is to obtain the signature of an individual who receives goods, thus ensuring that the delivery has been received in a proper way.
It is a commercial tool that has sufficient utility to make sure that the items have been delivered and on the other hand, it has been received. A delivery note is a piece of document that will also keep the customer at peace.
How useful is the delivery note?
You must be wondering about the benefits of this delivery note, right? Well, there are plenty. Let us explain in detail. The document can save you on so many occasions.
You will carry so many commercial transactions in your career, where you can be the issuer of the goods or the receiver of the same. You should not underestimate the importance of delivery notes.
Its benefits are to corroborate the delivery in terms of agreed requirements and thus, to be able to free from all guilt the concerned individual who has made the distribution of the merchandise in the event of a possible claim.
So if you are an issuer or sender, you must know that it is the goods delivery note so that it is reviewed properly so that everything is under control and there are no claims.
Are there different types of delivery notes?
While carrying out commercial transactions, you will find that there are various kinds of goods delivery notes.
Here are some of them.
Delivery note valued
This is a delivery note that has information, such as the value of each product, a specific amount of the contents and at times, the same is accompanied by the invoice.
Delivery note without valuation
This one will just show data about the item such as just the description. However, it is usually accompanied by the invoice.
What should a delivery note include?
The Spanish Tax Agency does not clearly have what a true delivery note typically consists of. Although they do not have a clear definition of the same, we would tell you what a delivery note should contain.
Here is the list of delivery note inclusions:
We will help you understand a delivery note and what it contains. Here is the list of delivery note inclusions.
- Delivery note number
- Personal information
- Place and date of issue
- Invoice number
- Type of items you deliver
- Previously fixed price
- Receiver’s signature with stamp
This should be done so that you don’t have any issues while sending it along with the goods. All this information should be present in a delivery note.
Additional details on delivery notes
A delivery note doesn’t contain product price, However, there are some exceptions depending on the industry and the items being shipped. Products might be listed by their unique item number. Such a delivery note might also consist of the address and banking information of the seller.
Does the delivery note have legal powers?
If you have no clear idea about what a sales note is, you might believe that it lacks a legal entity and the truth is that it is not totally true. You must have adequate knowledge about the legal power it has. This is necessary so that you do not face any kind of problems while issuing a delivery note.
Acceptance of delivery: If you are signing on the delivery note, it means that you are showing compliance with the delivery of the item and you are stating that it has reached the recipient.
If a pre-check is not done before signing the document; or if there is an issue, either in transport or during the delivery time, it won’t be possible for the seller to claim the carrier. In fact, the buyer will also not have the choice to claim the seller. These are some facts that should be kept in mind.
Payment terms and conditions: You should never think that the payment timeline for an invoice begins with the receipt of the item. This will serve in case the buyer doesn’t pay as per the agreement. Also, you have to take into note that the term begins to run at that time and doesn’t depend on the issuance of the product.
Proof of operation: It is a document that proves the delivery of the item on the agreed date and more importantly, which has been received by staff. You have to understand that a sales note has more importance than it seems. You have to be careful as you can end up committing the crime of documentary falsehood, which can lead to serious trouble. You can’t afford to be casual with the same.
Who can sign the delivery note?
Now let us explain to you who can sign the delivery note. This piece of the document can be signed by any individual who belongs to the firm that issues the product. For this, you have to make sure that your name and ID are present or the relationship that is related to the person who will get the parcel.
On some occasions, you might find that the sender is not going to sign the note because of the following reasons. Either it can be due to a wrong product or just because he or she is not eager to make the payment of the agreed amount on the agreed date. These are the common reasons.
If the person doesn’t sign the note, don’t think that it means that the invoice is being contested. In fact, it should be noted that a court can order the debtor to pay the invoice in case he has failed the same.
Notably, the delivery note can also be signed when there is absolutely no agreement by both the parties while keeping in mind that the differences occurred at the time of delivery and returning the item.
Are invoice and delivery notes the same?
They are not the same. In fact, they are not even close. If you do not have an idea about a sales note, then there is a chance that you would get confused.
A delivery note is not valid for tax purposes. It is basically a document that reports that the delivery of the item has been completed in a safe and proper way.
This is how the delivery note doesn’t replace the invoice. It is rather a complement to it. You may already know that the invoice is a document that validates the transaction of the operation. It also has effects related to taxation.
This is the reason why the invoice contains different information from that on the delivery note. The invoice has tax data of the buyer and seller, the number of products that exist, and the applicable VAT.
How can a delivery note be posted?
Recorded transactions have to be accounted for when they occur. The delivery note should be included in the accounting. However, these details are not considered and are not included in the accounting in certain cases.
So include the sales not to stay away from tax-related crimes and other issues.
If the accounting program and the warehouse management are linked, the delivery note should be included. It is thus possible to have exhaustive control of what enters and leaves smoothly.
If this is not your case, then you are not obliged to attach the delivery note as the valid document at the tax level is the invoice.
Should you keep the delivery notes?
Many individuals have this question. It is better to save the notes to have control of the merchandise you deliver. You will have your documents ready if required. It can also be used for possible claims with the delivery note.
Sometimes, the issued invoice doesn’t have the contents of the delivery note.
You can scan the document and keep it in your computer files as long as it is legible. This will actually save you a lot of money if there is an issue afterwards. It is always better to keep any document to guard yourself in the future.
As we have explained to you, a delivery note is something that often gets ignored. However, it is extremely useful and you must take care of it for tax purposes.
If you are selling, then keeping them makes sense as they are useful for creating invoices. However, it is not a primary document. It gives you control over the goods you sell. It has your back in the event of loss, lack of payment by the customer, etc.
We hope that the advantages of delivery notes are now clear to you.