Page 4 Chapter 2

CHAPTER 2
Selling Goods and Services

two parts to the delivery note. One part will stay with the customer. It is usually passed on
to the accounts department as a check that the goods have actually been delivered. The
other part will be returned to the supplier as proof of delivery. The customer cannot then
say they will not pay because the goods have not been delivered.

Dawson Supplies

43 Scartho Rd, Immingham, DN20 6NP

DELIVERY NOTE

NO. 23198

To : R Patel Your Order Number : 5379
th
Address : 27 High Street Date Sent : 25 August 2017
Norwich Per Invoice Number : 13608

NR1 3ZT Our Contact Person : J Grimston
Attention : J Crockett Telephone : 01469 515444

Quantity Delivered Description

50 Rolls of Blue Cotton Dress Material

Goods received in good order

Name : Signature : Date :

A delivery note usually has an identifying number. Of course the description should match
what has actually been delivered. No price is shown as this is not needed at the moment.
This will be shown in the invoice (see next). However, a reference to the purchase order is
usually made so the buyer can reference the delivery note to the purchase order.

An invoice is a document which itemises the goods delivered or services rendered,
specifying the terms of the sale and the price. The invoice is a legal document and if it is to
record VAT (Value Added Tax), must have certain items included. Details of what must be
included on a VAT invoice are dealt with in the Indirect Tax Unit of the AAT level 3 Diploma.
For now you should know that VAT is a tax on purchases. You must register with HMRC for
VAT when the value of all your sales reaches £83,000. (This figure is correct at the time of
going to press, but readers should be aware that this figure changes regularly, usually
annually. If you want to know the current registration threshold you should visit

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