Packing slip definition — AccountingTools (2024)

What is a Packing Slip?

A packing slip is a document that describes the contents of a shipment to a customer. The packing slip contains a separate line item for each item shipped. Each line item states the product number, product description, and unit quantity shipped. The weight may also be stated. The document is printed by the seller, who either includes it in the package or attaches it to the outside of the package in a sealed pouch.

A packing slip may be used by the recipient to verify the contents of a delivery.

Advantages of a Packing Slip

There are several advantages to using a packing slip. First, the person packing a box can match it to the contents of the box to ensure that everything has been included. Second, the recipient can do the same thing, checking the packing slip against the box contents to ensure that everything has been received. If not, the recipient can contact the seller regarding the missing items. Third, it can be used to identify which boxes include certain shipped items - which is useful when a shipment was split into several boxes. Finally, a packing slip can be used to reinforce the seller’s brand, by including the company logo and perhaps a marketing message.

The Difference Between a Packing Slip and an Invoice

A packing slip itemizes the contents of a shipment, while an invoice states the amount that a customer owes to the seller. A packing slip may be used as the basis upon which an invoice is created by a seller. Also, a packing slip is intended for the use of the receiving person at the customer, while the invoice is intended for the customer’s accounts payable person.

Packing Slip Best Practices

The packing slip may be the first thing that a customer sees after opening a delivered box. That being the case, it can make sense to include the company name and logo on the document, while also being careful to clearly and legibly state the contents of the box. Some organizations also include a message of greeting to the recipient on the packing slip.

Another best practice is to consider the environmental impact of this document. Some companies are now emailing the packing slip to customers, rather than including a printed version in the box. Customers can then decide for themselves whether they want to print out the emailed packing slip.

Yet another possible best practice is to note on a packing slip the amount of any ordered items that have been backordered. Doing so keeps recipients from contacting the seller to complain about missing items in a shipment. A variation on the concept is to include a suggested replacement for the backordered items that are currently in stock.

Packing slip definition —  AccountingTools (2024)

FAQs

Packing slip definition — AccountingTools? ›

A packing slip is a document that describes the contents of a shipment to a customer. The packing slip contains a separate line item for each item shipped. Each line item states the product number, product description, and unit quantity shipped. The weight may also be stated.

What is a packing slip in accounting? ›

A packing slip is used to denote the physical goods being received, where an invoice is the financial document of the order, containing information like how much money each product was sold for, the payment terms, payment method, and date.

What is the difference between a packing slip and a receipt? ›

Packing slips are a record of a transaction for buyers, meant to be included along with an order for a shipment. Order receipts are intended to serve as physical records of transactions for sellers. Neither packing slips nor order receipts are considered invoices for buyers.

What is the difference between an invoice and a packing slip? ›

Packing slips and invoices have distinct roles in the procurement process. They're both connected to the transfer of goods and services, but packing slips deal with actual materials and products, while invoices are tied to the financial component of these transactions.

What is the difference between a packing slip and a purchase order? ›

A packing slip is the list of physical goods purchased and shipped, whereas an invoice is the payment order for the purchase made. Packing slips are used to cross-check the items in the package with the purchase order and keep track of the items in case they are lost or damaged.

What is a packing slip in QuickBooks? ›

Find out how you can print packing slips in QuickBooks Online. A packing slip is a document that contains item, quantity, and other important shipping information when shipping goods to your customers.

What is the function of packing slip? ›

The Purpose of a Packing Slip

It allows the sender to verify that all items listed for shipment are included in the package. This verification process plays a vital role in preventing shipping errors and guaranteeing that customers receive the precise products they ordered.

Does a packing slip count as a receipt? ›

Packing Slips are the same as Receipts (Invoices), they just do not contain pricing information.

What is another name for a packing slip? ›

Other names used to describe a packing list are bill of the parcel, unpacking note, packing slip, delivery docket, delivery list, manifest, shipping list, and customer receipt.

Is a packing slip proof of purchase? ›

The Practical Importance of a Packing Slip

It gives a clear sense of the flow of goods and helps maintain customer satisfaction. On both the seller and buyer's end, it offers proof of what was ordered and received, which is essential in cases of discrepancies or refund requests.

Should a business keep packing slips? ›

Where are the current IRS requirements for record retention? You will find record retention guidelines in IRS publication 583. How long do you need to keep packing slips? If you are using it as a receiving document, then you should save it for 7 years, similar to a bill of lading.

Is a packing slip a source document? ›

There are many different types of business source documents. These include bank statements, deposit slips, purchase orders, sales receipts, and packing slips. Source documents are classified as internal or external, depending on where they originate.

What is a supplier packing slip? ›

29 December 2020. A packing slip, also called a delivery slip, is sent with a package when it is shipped. A packing slip describes the contents of the package and important information about the supplier.

Who sends a packing slip? ›

The packing slip is used by all those involved in packaging and shipping the item as well as the customer to ensure that all the items that were ordered were sent out and received.

What should a packing slip look like? ›

Packing slips should include the destination shipping address, order details like the number and other relevant information – as well as an itemised list of what's included in the shipment (and what isn't).

What is the difference between packing slip and packing list? ›

A packing list is given to the picker. A packing slip is included with the goods and sent or given to you.

Who prepares the packing slip? ›

A packing list refers to the form which describes the goods to be exported, including quantity, box, weight, dimension, price, and related shipment information. Who prepares a Packing List? Usually, a shipper prepares the packing list for export.

Is a packing slip the same as a bill of lading? ›

While packing slips and bills of ladings include some information overlap, both serve entirely different purposes. Packing slip templates include all the items shipped in a package and are included in a package for the recipient. On the other hand, a bill of lading is solely for the shipping courier, not the recipient.

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