A shipping note is a document that accompanies a shipment and details the items being delivered. It typically lists product names, quantities, and sometimes item descriptions. Unlike invoices, shipping notes usually exclude pricing information. It acts as a receipt for the customer and provides essential information for verifying orders, handling returns, and tracking shipments in the logistics process.
In a sales order workflow, shipping notes play a crucial role in connecting order fulfillment with delivery. A shipping note is usually generated after an order has been processed. The warehouse or shipping department then uses it to pick, pack, and prepare the shipment. The note is sent along with the shipment so the customer can verify received items against the original order. This helps the company ensure accuracy in delivery and serves as documentation in case of discrepancies.
Unlike invoices, shipping notes typically do not show the price of goods for privacy and security reasons. While invoices are financial in nature, requesting payment from customers, shipping notes mainly confirm the items shipped. It is not a financial document for accounting and payment.
Shipping notes are necessary because it ensures the following:
Shipping notes typically include the following:
With modern ERP and order management systems, shipping notes can be generated digitally, emailed, or included as PDF print outs with the shipment. With digitalization, businesses can easily pull customer, product, and sales information from databases, which improves productivity, reduces errors, and facilitates easier record keeping.
