01
Order
What will be bought or sold, in what quantity and under which terms?
ERP Guides
Commercial document workflow
How to Manage Invoice and Dispatch Note Workflows
Orders, shipments, dispatch notes and invoices record different stages of a commercial transaction. Linking the documents makes it possible to see what was ordered, shipped, received and invoiced.
Transaction chain
Connect each stage of the document flow
The order of steps can vary between businesses. The goal is to link records to the actual transaction and to one another.
02
Dispatch note / shipment
What quantity moved, on which date and from which warehouse?
03
Invoice
Which commercial transaction and quantity were billed?
04
Goods receipt / delivery
What quantity was actually received or delivered?
Document purpose
A dispatch note records movement; an invoice records the commercial charge
Logistics record
Dispatch note
Records the goods and quantities shipped or received, along with dispatch/arrival details and transaction date. It should link to the warehouse movement and order balance.
- Dispatching/receiving party
- Actual quantity and warehouse
- Linked order and shipment details
Commercial record
Invoice
Records the price, discount, tax and payment terms for a sale or purchase against the relevant account. Linking the supporting order and dispatch note helps check quantities and amounts.
- Customer/supplier account
- Price, currency and payment terms
- Related order and dispatch records
Before completing a document
Check the counterparty, quantity and source links
Preparing a document correctly means more than filling its header fields. Verify that the source order, actual shipment and invoice lines describe the same transaction scope.
Counterparty and address
Verify account, billing address, ship-to address and receiving party.
Document scope
Check that order lines are linked to the correct document and delivery.
Quantity and unit
Compare ordered, shipped, received and invoiced quantities, including unit conversions.
Price and terms
Review that unit price, discount, currency and payment terms match the approved transaction.
Partial shipment scenario
One order may have multiple shipments and invoices
When an order is not shipped all at once, track each shipment’s dispatch note and invoice status separately. This helps prevent billing the first shipment twice or closing the unshipped order balance by mistake.
100 units
Approved order quantity
60 units
First shipment and its linked invoice
40 units
Awaiting the second shipment and invoice
Handling exceptions
Keep cancellations, returns and quantity differences in the document trail
Short or excess shipment
Record the difference between expected and actual quantity; update the order balance and next delivery accordingly.
Invoicing after dispatch
Select the dispatch notes covered by the invoice and update their status; keep uninvoiced quantities visible.
Cancellation or return
Link the correction to its source document and retain its approval, reason and inventory/account effects.
Electronic document flow
Include e-document status in the workflow
Electronic document transmission, recipient responses and status messages should be linked to the related transaction. Document type, provider coverage and business obligations may depend on the transaction and current rules; verify current official requirements and service scope before implementation. This guide is not legal advice and does not provide a current list of obligations.
Frequently asked questions about invoices and dispatch notes
What is the difference between a dispatch note and an invoice?
A dispatch note records which items and quantities moved or were delivered. An invoice records the value and account details of the commercial transaction. They may be linked in a business workflow, but one should not be assumed to replace the other.
How should a partially shipped order be handled?
Create a dispatch note for the quantity actually shipped and record its invoicing status. Leave the remaining order quantity open and link later shipments and invoices to the same order.
Can multiple dispatch notes be combined on one invoice?
This depends on transaction type, period and the company’s document process. When consolidation is supported, select the covered dispatch notes explicitly and track each note’s invoicing status and remaining quantity.
How should a cancellation or return document be tracked?
Link a cancellation or return to the original order, dispatch note or invoice, retaining the reason, affected quantity and approval status. This lets inventory and account transactions be reviewed with their source.