What is a Shipping Invoice and How to Create One?

Logistics is a complicated procedure that involves moving commodities from one location to another. Whether you’re handling a small parcel or several containers, monitoring your delivery at every stage is crucial to ensuring their proper arrival. Without accurate records and practical tracking tools, the logistics process can be a headache. Various statements, including a shipping invoice, help control shipped commodities and verify delivery.

The blog post will explain the primary components, types, and tactics to interact with the document.

What is a Shipping Invoice?

It is a carrier’s legal bill for the movement of commodities. It’s an accounting legal document sent by a logistics organization during the goods transportation from one location to another. Such a bill of lading (B/L) serves as an agreement between the consignor and the transporter. After receiving the document, the client also signs it.

It’s critical to understand the distinctions between a commercial vs a shipping invoice. The former is utilized to complete worldwide deals and describes the operational value, payment conditions, and data about the participants involved. A transport invoice is a statement that details the freight costs.

The carrier always issues an invoice for the shipment. When the order is prepaid, the shipper receives the invoice and settles the payment before the container departs. If the booking is cash on delivery, the overseas buyer obtains the invoice and makes the payment upon arrival.

Legally, it is an enforceable contract of carriage; without a shipping invoice, you cannot claim insurance or sue the carrier. For customs, it is secondary evidence. If the cargo number on the commercial invoice doesn’t match the B/L, customs immediately recalculate the duty at a higher amount and assess penalties on the same day.

Key Components of a Shipping Invoice

Each B/L contains particular information. The document highlights the commodities being transported, the shipment volume, the cost, applicable fees, and the delivery point. Below, we’ll cover the basic data you must utilize.

• Sender’s contact data. You must provide the contact person, writing down the full name and location of the firm.
• Recipient’s contact data. The statement must include the recipient’s contact data, such as their name and mailing address.
• Purchase order (PO) number or reference numbers. The information is necessary to provide accounting aims and may be utilized to verify the transportation and release of commodities.
• Instructions and notes. The B/L has a special section to note shipping conditions.
• Date of receiving. The document must include the date the commodities were obtained. The information simplifies cargo tracking and is valuable for reconciling shipping reports.
• Commodities description. The B/L must describe the commodities being shipped, including dimensions, weight, and an item list.
• Packaging category. Be sure to indicate the packaging material category, e.g., cardboard or crates.
• Cargo class. Remember that classification includes 18 shipment groups. When choosing a category, consider the type, size, weight, value, and liability. You should always add this parameter.
• Special marking. In some situations, additional markings are required on the commodities. It is critical when we speak about hazardous materials, as they have exceptional norms.
• Signature. It is an official statement that requires fields with the sender’s and the carrier’s signatures.

You must ensure that the data on the shipping invoice is error-free and complete. Any inaccuracies may lead to delays and other issues with your cargo.

Types of Shipping Invoices

Firms can utilize various categories of waybills, each with its own characteristics. We have collected the most popular options.

• Standard invoice. The receipt is suitable in most situations. It includes the client’s number, name, and contact info, as well as the firm name, address, and phone number.
• Commercial document. It is necessary to organize international delivery. The B/L confirms the order and serves as a formal agreement between the firm and the client.
• Proforma invoice. The purchaser receives the document before transportation. You may also encounter it as a “projected bill of sale.” This shipping invoice contains information on the purchased commodities, such as shipment costs and volumes.

Small businesses typically choose standard receipts. Other categories are popular among larger firms.

How to Create a Shipping Invoice

Logistics invoices are crucial to maintain a reliable supply chain management. They help track all connected expenses and ensure that every stage of the procedure is accounted for. Let’s discuss the primary steps involved in creating such a document.

• Choose a template or create shipping invoice from scratch. You may select from various formats, including Word, Excel, Google Sheets, and PDF. Once you’ve customized the sample, forming future receipts will be as simple as filling in the blanks.
• Include vendor and purchaser data. You should add name, contact information, email, and physical address. You may utilize additional data, including a website. If you see information between the recipient and shipping addresses, specify where the client would like the product delivered.
• Collect shipping information. You must enter the origin, destination, pickup period, and individual invoice number. You should also agree on the shipping option, as it affects the final price and the environment.
• Utilize a client number. It is different from the invoice combination. Clients can utilize this information to track order status, process returns, and ask questions. Including this number and providing after-sales support increases your chances of long-term customer cooperation.
• Specify payment conditions. You must discuss the terms and methods of the transaction with the contract and describe them in the shipping invoice. The parties may choose different payment solutions, such as cash or a card.
• Describe the delivery items. You should list all the components of the delivery. In this chapter, provide information on containers, gross weight, unit price, and commodities volume. An accurate description allows the consignor and buyer to verify the presence of all items.
• Gather pricing data. Finally, include the full transportation expenditures and commercial value. If there are any additional costs, please include them.

You may automate the creation of these documents to decrease mistakes and free up your staff to perform more creative work.

Common Mistakes to Avoid

Dealing with shipping invoices can be challenging, especially for companies engaged in international trading. Let’s study the most common problems and how to resolve them.

• Missing or incorrect shipment or recipient information. It occurs when the sender, recipient, or notifying party information doesn’t match the legal documents down to the last character. To prevent this, copy and paste data from the official statement and lock fields before creating the final PDF.
• Miscalculating shipping expenditures, taxes, or duties. The mistake occurs when the full invoice sum doesn’t match the freight contract, the exchange rate on the exact date of the bill of lading, or the zero-rate rules for international transport. We recommend first performing all calculations in a separate spreadsheet and collecting central bank data for the exact date of the bill of lading.
• Omitting payment terms or currency. Such problems occur when the commercial invoice for shipping fails to define the currency and payment deadline clearly. If even one field is blank, the bank will refuse to accept the shipment, and the client will delay the transaction. Remember to include the full sum payable, the Currency of Payment, the payment due, and the Bank details in each template.

Your goal is to avoid document chaos. Your logistics partner should be able to open the file and quickly find the container number. Ensure your accountant will quickly match it with the PO.

Best Practices for Shipping Invoices

To prevent legal complications and delays, small firms need to adopt practical document processing strategies.

• Utilize a consistent template. It should contain the name, bank details, and other essential data. Block all fields that never change. From now on, every commercial invoice for customs should be created only from this file.
• Clearly itemize all charges to maintain full transparency. Avoid grouping everything under a single line labeled “freight.” Instead, break down costs into specific categories such as base ocean freight, bunker surcharge, and peak season surcharge. When customs officials or the buyer review the invoice, they should be able to identify within seconds exactly where each charge originated.
• Verify all data before sending. Remember the 60-second verification rule. After completing the template, close the file, then reopen it and read each figure out loud. Ensure that the commodities’ description, volumes, and address match in all documents.
• Keep digital records to organize bookkeeping and audits. Save electronic copies of shipping documentation for each operation. They may be helpful years later to provide tax audits and legal reviews.

Software that automatically generates documents from POs saves working hours and decreases inaccuracies. Choose digital solutions that integrate invoicing and delivery functionality.

Bottom Line

As we can see, shipping invoices are critical to reach business prosperity. They ensure transparent operations and stable logistics. If you lack experience creating such documents, this may lead to delays and mistakes. BooksTime specialists will help you deal with shipping statements efficiently and maintain accurate records.

Using the correct shipping invoice format simplifies accounting and ensures accuracy. It will help prevent delays in customs clearance and shipment payment. Companies with standardized document-creation processes are better prepared for audits and demonstrate greater financial resilience.