Delivery Note vs Invoice: Key Differences

Short answer

A delivery note records which goods were delivered to a customer or location and can capture receipt, shortages, or condition. An invoice records the financial charge and requests payment. The delivery note supports fulfillment evidence, while the invoice includes prices, tax, total, payment terms, and amount due.

Create the billing document with the free invoice generator, and retain the matching delivery record when the customer needs proof of fulfillment.

What is a delivery note?

A delivery note, sometimes called a delivery docket, accompanies or records a shipment. It can include:

• Supplier and recipient.
• Delivery-note number and date.
• Sales order or purchase-order reference.
• Delivery address.
• Product descriptions and stock codes.
• Quantities dispatched and delivered.
• Package or serial numbers.
• Shortage, damage, or condition notes.
• Recipient name, signature, or electronic confirmation.

Prices may be omitted when the receiving team only needs to verify goods. The exact format depends on the operational and customer process.

What is an invoice?

An invoice focuses on the financial transaction. It commonly includes:

• Supplier and customer billing details.
• Unique invoice number and invoice date.
• Delivery-note, order, or purchase-order reference.
• Billable goods and actual quantities.
• Unit prices, discounts, shipping, and line totals.
• Applicable tax, currency, total, and amount due.
• Payment deadline and instructions.

The how to create an invoice guide covers the full invoice structure.

Key differences

• Purpose: Delivery note proves or records fulfillment; invoice requests payment.
• Audience: Warehouse and receiving teams use delivery notes; accounts-payable teams process invoices.
• Prices: Delivery notes may omit prices; invoices must explain the financial amount.
• Timing: Delivery notes are created for dispatch or receipt; invoices follow the agreed billing trigger.
• Status: Delivery notes record delivered, short, damaged, or returned quantities; invoices record due, paid, overdue, or credited amounts.
• Signature: A recipient acknowledgment can support delivery evidence but does not prove payment.

Practical delivery example

A wholesaler ships 12 cases under purchase order PO-4930:

1. Delivery note DN-2204 lists 12 dispatched cases.
2. The receiving team records that 11 cases arrived and one was damaged.
3. The supplier reviews the discrepancy and agreed resolution.
4. Invoice INV-2890 bills the accepted quantity or otherwise follows the contract.
5. The invoice references PO-4930 and DN-2204.

The accounts-payable team can compare the order, delivery record, and invoice before approval.

For product quantities and pack sizes, see the wholesale invoice template.

Delivery address vs billing address

The delivery note normally uses the ship-to location and receiving contact. The invoice uses the bill-to entity and accounts-payable route. They can differ when a head office pays for goods delivered to a branch, warehouse, customer, or job site.

Use the bill-to vs ship-to guide to keep the entities and addresses clear.

Partial deliveries and backorders

When an order is fulfilled across several shipments:

• Give each delivery its own reference.
• Record actual quantities and dates.
• Identify backordered or cancelled items.
• Invoice according to the accepted billing schedule.
• Prevent later deliveries from rebilling earlier quantities.

One invoice can cover multiple delivery notes when the customer accepts consolidated billing and every line remains traceable.

Shortages, damage, and returns

Record discrepancies at delivery and follow the agreed inspection and claim process. Do not alter a signed delivery record or issued invoice without preserving the history.

If the charge must be reduced after invoicing, use the appropriate credit, correction, or refund workflow. The invoice dispute process helps separate documented fulfillment questions from routine payment follow-up.

Matching documents before payment

A common control compares:

1. Purchase order: what the buyer authorized.
2. Delivery note: what the buyer received.
3. Invoice: what the supplier billed.

The references, products, quantities, and agreed prices should align. Differences require investigation rather than automatic approval or rejection.

Attach or provide the delivery note when the customer requires it. Follow the invoice supporting documents guide for secure and readable evidence.

Final checklist

• Delivery note and invoice have distinct unique references.
• Supplier, recipient, customer, and addresses are correct.
• Order and shipment references match.
• Delivered and invoiced quantities reconcile.
• Shortages, damage, and returns are documented.
• Prices, shipping, tax, currency, and totals appear on the invoice.
• Recipient acknowledgment is retained when required.
• Order, delivery, invoice, credit, and payment records remain linked.

Browse the blog archive for more product invoice and record-keeping guidance.

FAQs

Can a delivery note replace an invoice?

Usually no. A delivery note records fulfillment and may omit prices, tax, totals, and payment terms required for billing.

Does a signed delivery note prove payment?

No. It can support evidence that goods were received, but payment must be verified separately through the financial records.

Should prices appear on a delivery note?

They can, but many businesses omit them because the receiving team only checks items and quantities. The invoice should state the financial values.

Can one invoice reference several delivery notes?

Yes, when consolidated billing is agreed. List the delivery references and make quantities easy to reconcile without duplication.