How to set up Xero to generate Delivery Notes

For many businesses, delivery notes are an essential part of the sales process. These documents serve as proof of what has been shipped, ensuring transparency between your business and your customers. While Xero, a cloud-based accounting software, does not have a built-in delivery note feature, you can still create and manage them effectively with a few workarounds and integrations. This blog post will provide a detailed guide on how to set up Xero to generate delivery notes using its existing features and third-party tools.

What Are Delivery Notes?

A delivery note is a document that accompanies a shipment of goods. It provides details about the items included in the delivery, such as:

• Product descriptions
• Quantities
• Shipment date

Delivery notes are particularly useful for:

• Ensuring customers receive the correct items and quantities
• Providing proof of delivery
• Tracking shipments

Unlike invoices, delivery notes do not include pricing information, making them ideal for use with shipments.

Approach 1: Customising Invoice Templates to Act as Delivery Notes

The simplest way to generate delivery notes in Xero is by customising an invoice template and using it as a delivery note. Here’s how:

Step-by-Step Guide:

1. Log in to Xero: Access your Xero account and navigate to the settings menu.
2. Go to Invoice Settings:
   • Click on Settings > Invoice Settings.
   • Select an existing invoice template or create a new one.
3. Customise the Template:
   • Remove pricing columns (e.g., unit price, subtotal, and total) from the template.
   • Add a custom label such as "Delivery Note" at the top of the document.
   • Include fields for shipment details, such as delivery address and date.
   • Ensure product descriptions and quantities remain visible.
4. Save and Apply the Template:
   • Save the customised template.
   • When generating a delivery note, select this template instead of your standard invoice template.

Benefits:

• Quick and easy to implement.
• No additional costs involved.
• Suitable for small businesses with simple requirements.

Limitations:

• Delivery notes are tied to the invoicing feature, which may cause confusion if not managed carefully.
• Limited flexibility for businesses with complex workflows.

Approach 2: Using Xero’s "Quotes" Feature as Delivery Notes

Another workaround is to use Xero’s Quotes feature. By customising a quote template, you can create a delivery note format.

Step-by-Step Guide:

1. Log in to Xero: Access your account and navigate to Business > Quotes.
2. Create a New Template:
   • Go to Invoice Settings and select the Quotes tab.
   • Create a new template or edit an existing one.
3. Customise the Template:
   • Replace the title "Quote" with "Delivery Note."
   • Remove pricing-related fields.
   • Add any relevant shipment information fields, such as expected delivery date.
4. Generate a Delivery Note:
   • Create a new quote and select the customized template.
   • Populate the fields with the required details.
   • Save or print the delivery note as needed.

Benefits:

• Keeps delivery notes separate from invoices.
• Allows for more customisation options than the invoice method.

Limitations:

• Requires manual adjustments to quotes, which may be time-consuming.
• Does not integrate directly with inventory management.

Approach 3: Integrating Third-Party Apps for Delivery Notes

For businesses with high order volumes or complex logistics, integrating Xero with a third-party app is the best option. Tools like Unleashed, Dear Systems, or WorkflowMax offer advanced features for managing delivery notes.

Step-by-Step Guide:

1. Choose a Third-Party App: Select an app that supports delivery note generation and integrates with Xero. Popular options include:
   • Unleashed: Best for inventory-heavy businesses.
   • Dear Systems: Comprehensive order and inventory management.
   • WorkflowMax: Ideal for service-based businesses.
2. Connect the App to Xero:
   • Log in to your Xero account.
   • Authorize the third-party app to access your Xero data.
3. Set Up Delivery Notes in the App:
   • Configure the app to generate delivery notes based on your sales orders.
   • Customise the delivery note template with your business’s branding and required fields.
4. Sync with Xero:
   • Ensure sales invoices, inventory updates, and delivery notes sync seamlessly between the app and Xero.

Benefits:

• Advanced features, such as automatic delivery note generation and inventory tracking.
• Saves time by automating repetitive tasks.
• Scalable for growing businesses.

Limitations:

• Additional subscription costs for the third-party app.
• May require initial setup and training.

Approach 4: Manually Creating Delivery Notes Using Excel or Word

For businesses that only occasionally require delivery notes, manually creating them using tools like Excel or Word is a low-cost option.

Step-by-Step Guide:

1. Create a Template:
   • Use Excel or Word to design a delivery note template.
   • Include essential fields like item descriptions, quantities, shipment date, and delivery address.
2. Populate the Template:
   • Fill out the template manually for each shipment.
   • Save it as a PDF or print it for use.
3. Record in Xero:
   • Attach the delivery note to the corresponding invoice or quote in Xero for record-keeping.

Benefits:

• No additional software or setup required.
• Highly customisable to your business needs.

Limitations:

• Time-consuming for high order volumes.
• Lacks automation and integration with Xero’s features.

Choosing the Best Method for Your Business

Each approach has its pros and cons. The right method for your business depends on your needs and resources:

• Small Businesses: Customising invoices or quotes may be sufficient for businesses with low shipment volumes.
• Growing Businesses: Integrating with a third-party app is ideal for scaling operations and improving efficiency.
• Occasional Use: Manual delivery notes are suitable for businesses with infrequent shipping needs.

Conclusion

While Xero doesn’t natively support delivery note generation, there are several workarounds and integrations to help you meet your business needs. Whether you choose to customise templates, use third-party apps, or create delivery notes manually, each method has its own advantages.

By setting up an efficient system for generating delivery notes, you can streamline your shipping process, enhance customer satisfaction, and ensure better record-keeping. If you’re ready to take your delivery process to the next level, start by exploring the options outlined in this guide. Let us know in the comments which approach works best for your business, or share your own tips for managing delivery notes in Xero!