Packing Slip vs Invoice – The Ultimate Comparison Guide in 2024

A well-executed strategy is essential to achieving market preeminence. Packing slips and invoices play pivotal roles in order fulfillment. But, people often confuse one with the other.

But is a packing slip the same as an invoice?

No. The documents are similar in content but have different purposes. 

An invoice is a legal document for both parties. A packing slip is a shipping list that checks the packaged product.

It is vital to know the importance and difference between the packing slip and the invoice. This accelerates your order completion process.

This article will discuss WooCommerce packing slips and invoices. We will also cover their benefits and the packing slip vs invoice common differences in detail. 

So, let’s get started.

What is a packing slip?

A packing slip is a printed shipping document where you mention the complete list of items included in your package and attach it to the shipping box.

This packing list contains some additional important details, such as your company’s address and customer’s address, invoice number, purchase order number, etc. 

Though it is a very crucial part of your shipping process, packing slips don’t include any legal documents.

Here’s an example of a WooCommerce printed packing slip made with the Challan plugin –

So, is a packing slip proof of purchase?

Yes, absolutely. When a customer receives a package, the packing slip confirms what products are wrapped in the box. So, they can use this as a backup to verify from the delivery slip whether they have received everything they ordered or not.

Again, packing slips are equally important for you as a WooCommerce owner. If you have a separate shipping department, they can use the order slip to accurately pack and ship the products for that particular order.

What is the purpose of a packing slip?

Do you ever feel a print packing slip is unnecessary for your WooCommerce business? Well, you need to think twice, and below, we will explain how a packing slip helps you with your entire sales management.

Shipment integrity

If you have a separate packaging and shipping department, you can send them the packing slip so they know which products to pick from the inventory for that specific order.

Again, in order for you to keep the quality of your services at a consistent level, it is essential for you to verify the integrity of an order before sending out a shipment.

Track all items in the order

If an order is large or contains a wide variety of SKUs from different warehouses, it may require multiple shippings. That means you need to ship items of a single order in different boxes.

A packing slip can help immensely in such situations. Because slipping document the quantity of items as well as their location within an order.

Customer satisfaction

When you include a packing slip inside the package, your customers can check and verify if they have received everything they ordered. 

So, if any of the items don’t match or go missing, then your customers can use the packaging slip to contact you about solving the issue by refunding or reshipping.

And, that’s how a packing list can help you increase your customer’s satisfaction.

Ensure quick delivery

Generally, packing slips are placed inside the box, and shipping labels are attached outside the box.

So, even if the delivery label is damaged or lost somehow, the delivery man can still send the package using the inside order slip.

Therefore, you won’t have to deal with repackaging, refunding, or shipment delays.

Brand building

Just like personalized invoices, a custom packing slip can also play as a marketing tool.

You can include brand elements such as logo, tag line, color pallets, etc., to customize your packing slip and show off your brand’s professionalism.

Bonus Tip:

If you’ve to handle a lot WooCommerce orders on a regular basis, you should use third-party plugins for your package slips. The main benefits of these packing slip plugins are automatically create and send them based on order status.

In this case, Challan plugin is one of the best options to further customize your document to impress your audience.

What information is included on a packing slip?

Generally, the list of items on a packing slip can vary based on the type of business and product. However, most professional WooCommerce packing list contains the following:

Elements of a packing slip:

• Customer’s shipping and billing address
• Your company/warehouse address
• Packing slip number
• Order number
• Order Date
• List of products
• Product’s SKU
• Quantity of each item
• Product weight and dimension
• Total items

Do all packages need a packing slip?

Not all packages require a packing slip. However, it’s generally recommended to include one, especially for e-commerce and business shipments. 

A packing slip is particularly needed for orders with multiple items, as it helps  to prevent errors and disputes by clearly listing everything that was shipped.

On the other hand, for orders such as digital products or simple, single-item shipping, this packing list may not be necessary. 

Again, some companies choose paperless or digital order confirmations instead. Ultimately, the decision to include a packing slip depends on the nature of your shipping options and your company’s standard policies.

Can I use a packing slip for returns?

Yes, you can use packing slips to ensure returns as well. If a product is lost, damaged during shipping, or if your customer is unhappy with their order, the slipping list can help identify the issue quickly and streamline the return process.

In fact, if your business is paired with a Return Merchandise Authorization (RMA) form, the return process becomes much easier. 

To avoid unexpected costs from these issues, it’s also wise to ensure your eCommerce business is properly insured.

What is the difference between a packing slip and a sales order?

The packing slip and sales order contain some of the same details, but there are slight differences between them.

A packing slip is a list of the items in a shipment, that are included in the package. While a sales order is sent to the customer before the shipment goes out as a confirmation of sale. 

The sales order is often checked against the packing slip to make sure everything is included accurately to complete the order,

What is the difference between BoL and packing slip?

A Bill of Lading (BoL) and a packing slip have different purposes. 

A BoL is a legal document between the shipper and the carrier. It acts as a receipt for the goods and particularly focuses on the shipment terms.

In contrast, a packing slip is included with the shipping pouch and lists the items in the package. It helps the recipient verify that they’ve received everything they ordered.

What is an invoice?

An invoice is a billing document you create in order to receive payments or submit as proof of the transactions made by the client/customer.

For WooCommerce stores, customers generally pay in advance. But still, an invoice serves as a financial document to keep records and also works as legal proof of a purchase order.

And, these online invoices are known as electronic invoices and come in PDF format.

Example of an invoice:

Why do you need invoices?

Even though you don’t have to generate invoices for customer orders to get paid through WooCommerce stores, there are still a number of benefits to an invoice for being issued.

Let’s find out some of the benefits.

Keeping records

The first and foremost purpose of a WooCommerce invoice is to help keep records. If you are doing a B2B model business and selling to medium to large companies, then they will always ask for an invoice or waybill for their record keeping.

Even if you are selling to individual customers, they will also want an printed invoice keep a legal record of your sales transactions.

Maintaining a level of professionalism

A professional invoice can have a significant impact on your customers. Even if you run a small WooCommerce shop, sending your customers an invoice can set you apart from the competition and gain your customers’ trust.

In fact, an invoice is a major part of your customer’s shopping experience, so you should not ignore it by any means.

Showcases your brand and serves as a marketing tool

In WooCommerce, you can create custom billing templates or invoice templates and include promotional elements such as a business logo, upsell product links, etc.

A personalized WooCommerce invoice always has the upper hand to impress customers and overall grow your brand reputation.

Easy tax filing

As the owner of a WooCommerce business, it is essential for you to keep a record of sales invoices for tax purposes. Again, in order to accurately report your income and guarantee the payment of appropriate taxes.

And invoices are an important part of the paper trail when it comes to GST and income tax, especially when tax returns are filed. 

Legal protection

An invoice serves as a legally binding record of an agreement between you and your customers to protect you from the possibility of being sued for fraud.

So, if there is a disagreement or discrepancy regarding a particular customer order, the elements of the invoice can be used as proof of record against such disputes.

Payment tracking

An invoice is a crucial accounting tool that is often overlooked. Keeping accurate records of payments is beneficial for both buyers and sellers. As a result, you’ll be able to see where you stand in terms of finances.

Get paid on time

If you provide your products or services on a contractual basis, then invoices can come in mighty handy. It’ll save you from chasing your clients for the payments.

To expedite the buyer’s invoice payment process, your invoice contains essential information such as the due date for payment, the method of payment, information about the seller, etc.

What information is included on an sales invoice?

The WooCommerce invoice you create won’t serve you the benefits we mentioned above unless you include all the essential elements.

So, let’s describe the crucial components of a typical invoice you must include:

• Company logo
• Company information
• Customer’s information
• Invoice number
• Sequential order number
• Date
• Payment method
• Products purchased
• Price and quantity
• Tax information
• Subtotal and Total amount charged
• Terms & conditions
• Personal notes

Can you ship without an invoice?

No, as the invoice is a legal document and it includes all the details, especially pricing, other payment terms, and even tax. Without this document, customs clearance might be delayed or even declined. 

And this can lead to additional storage fees, returned shipments, or legal issues. 

So, not just the purchased products, even samples of low value require a commercial invoice.

Can I use an invoice for returns?

Generally, no, you cannot directly use an invoice for returns.

While an invoice is a record of a sale, it doesn’t include a return authorization. If you want to return your products, you should have a credit memo or merchandise return authorization (RMA).

Again, some businesses use a specific “return invoice” to document the returned goods.

What’s the difference between an invoice and a commercial invoice?

An invoice is a formal document that outlines all sales details and requests to accept payments. It is typically issued after the delivery of a product or service.

On the other hand, a commercial invoice is a specialized version that is basically used for international shipments. This invoice provides additional details like origin, weight, and delivery date for customs clearance.

Packing slip vs invoice | 9 key Differences

Packing slips and invoices are essential documents in the order fulfillment process, but they have distinct goals for the operational efficiency of the entire shipment.

In this section, we will talk about packing slip vs invoice in detail, and at the end of our discussion, we will include a comparison table for you to understand them well.

Packing slip vs invoice – Document category & type

A packing slip is a shipping document. You must create it only after the order has been confirmed. It’s basically a shipping list to help you include the items for the purchased orders.

In addition to that, this document tells your customers what products are included in the package.

In contrast, an invoice is a billing document. It can be created before or after a transaction takes place.

You can create an invoice to ask the client for payment or submit it as proof of payment. It primarily serves as a sales receipt for record-keeping and resolving legal compliance.

Packing slip vs invoice – Template file format 

A packing slip must be a printed document that needs to be attached to the shipped package. So, this packaging slip is often created as simple text documents (like .txt, .doc or .csv) for quick generation and printing. 

However, PDF format is becoming increasingly common for sharing digital packing slips to effectively manage the order processing systems. 

If we talk about invoice format, it’s generally sent virtually to the customers. So, the popular formats for invoices include CSV, PDF, and specialized accounting software layout. 

However, online stores generally create or even use invoice templates in PDF format and attach them to emails. You can also print it out if the receiving company or customer requires you to submit it in printed format.

Packing slip vs invoice – usage in order fulfillment

The selling scopes a WooCommerce platform offers to business owners are endless. Moreover, you can sell a single product or multiple products or have a WooCommerce membership website where you can sell monthly subscriptions/packages or even sell online courses.

No matter what you sell in your WooCommerce store or what type of products (physical/virtual) and services you sell, you need to create an invoice for every order you receive.

And, as we have mentioned before, you can create WooCommerce invoices before or after a customer pays for the orders.

On the other hand, you can only need packing slips when there are some physical products involved. You need to create packing slips in order to let your customers know what products they should expect in the shipping box.

You don’t need packing slips if you are selling virtual products.

Packing slip vs invoice – Sender and receiver

You, as the seller, are responsible for sending both the packing slip and invoice. However, to whom you send these documents can vary depending on customer types.

If you are selling to a company, you need to send the invoice to the accounts department and the delivery slip to their inventory department.

Also, if you have a separate packaging department, then you need to forward a copy of the packing list to them first. Once they get it, it’ll be easier to arrange all the products according to the packing list and finally ship them to your customers.

If your customer is buying the product for someone else or wants someone else to receive the products from a different location, then they will receive the invoice, and the receiving person will get this order slip.

Packing slip vs invoice – Contents in receipt

The packing slip and invoice have some common contents or elements inside them. 

For example, both the invoice and packing slip have your shipping company/warehouse address, the customer’s billing and shipping address, product list, product’s SKU, invoice and order number, order date, etc.

However, a packing list doesn’t need to have price summaries such as payment method, tax amount, sub-total, and total price. Packing slips also don’t contain added components such as customized footers, signatures, paid stamps, etc.

On the other hand, an invoice doesn’t need to include product weight and dimensions. It mainly tells you what you bought, how much it costs, and any taxes you need to pay with the proper shipping details.

Packing slip vs invoice – How it works

Now we will show you when you need to create a WooCommerce invoice and when you will need a packing slip with a practical example.

Suppose you have a customer named Mikael Edington, and he has decided to buy some products from your WooCommerce store.

Here’s how the process works –

1. Mikael adds some products to your WooCommerce store’s cart and jumps to the checkout page to complete the order.

2. Mikael completes the order by filling in all the details and paying using one of your payment methods.

3. The payment platform will verify the payment and notify your WooCommerce system that the transaction was successful.

4. As soon as you receive confirmation from the payment gateway provider, you need to create an invoice and attach it to the order confirmation email that Mikael will receive.

5. After sending the invoice, you must start the order fulfillment process. You need to create a packing slip and send it to your warehouse/shipping department if you have any.

If you do the packaging yourself, you still will need the packing slip to organize the products Mikael ordered and put the order list paper with the products inside the parcel.

6. Suppose Mikael has bought the products for his friend Flora and wants you to ship them to Flora’s house. In that case, you need to send the package to Flora with the order slip inside. However, Flora won’t receive the invoice; Mikael will.

What happens if Mikael represents his company ‘Ceresco’ and wants you to send the products to the company’s warehouse?

If you are dealing with regular eCommerce orders and accepting payment in advance, then Mikael will receive the invoice, and the warehouse will receive the products along with the delivery slip.

However, in case you are sending a Pro-forma invoice, then you need to send the invoice to the accounting department of Ceresco. And send the products to their preferred location along with the packing slip.

Packing Slip vs Invoice – Legal Implications

While both documents are important, the invoice is the one with the legal punch. It’s the official document that says, “I sold you this stuff for this much money.” If there’s a dispute about the sale, the invoice is your proof. It’s essential for taxes, returns, and any legal issues that might arise.

However, a packing slip is more like a shipping list. It just tells you what’s in the box. It’s helpful for checking if everything arrived, but it doesn’t have the same legal weight as an invoice. 

So, if you have a problem with the sale price or terms, the packing slip won’t help you much.

Packing slip vs invoice – Visual comparison

We will now take a look at the invoice and packing slip we created for Mikael Edington. We used the Challan plugin to create both the order slip and invoice.

Here’s the personalized invoice for Mikael Edington.

And this is the packing slip for that exact order.

The header section, which includes your address, Mikael’s addresses, invoice and order number, date, etc., of both the packaging slip and invoice, looks similar.

However, the main differences are in the body, including the product item table and the footer section.

The WooCommerce invoice product item table includes individual prices, subtotal and tax costs, and tax percentages for the products. It also has a price summary section and footer with custom notes, a paid stamp.

The invoice doesn’t have product weight and dimensions.

The packing slip, on the other hand, doesn’t need price and tax information. Therefore, it only has weight and dimensions for the products.

The packing slip doesn’t necessarily need any paid stamps or custom notes, which is why this document has no footer.

Packing slip vs invoice – Comparison table

Let’s have a look at what we have learned about packing slip vs Invoice in a nutshell.

Content	Invoice	Packing slip
Document category	Billing document	Shipping document
Document type	Can be both downloadable pdf and printed	Must be printed
Product type	Can be both virtual and physical	Must be physical
Triggers	The payment platform triggers invoice creation	Shipping/order fulfillment technology triggers delivery slip creation
Time of creation	Can be created before or after payment/order confirmation	Must be created after order/payment confirmation
Document use case	Serves as a financial document	Serves as a shipping list document
Price summary	Must include subtotal and total prices	Doesn’t require e price summary
Tax information	Required	Not required
Product weight and dimensions	Not required	Required
Total items quantity	Not required	Required
Personalization	Highly customizable	Limited customization
Recipient	The customer who pays	Who receives the package
Company’s recipient	The accounts department	The warehouse
Confirmation	Confirms that an order has been placed successfully.	Confirms all products of that order are present in the package.
Refund issue	Required to issue a refund	Not required

When do I need a packing slip and when do I need an invoice?

Packaging slips and invoice often get mixed up, nd many people think they’re interchangable. So, let’s clear up the confusion when do you need a packing slip and when do you need a invoice.

You’ll need a packing slip when:

• You’re sending multiple items in a single shipment.
• You want to reduce shipping errors for proper inventory management.
• Your customer requires a detailed list of what’s in the package with the proper dimension or size.

You’ll need an invoice when:

• You’re requesting payment from your customer.
• You need to provide proof of purchase for the buyer.
• You want to document the transaction for accounting purposes.

Can a packing slip be used as an invoice?

No. A packing slip only shows what was shipped, not how much it costs or when payment is due. So, this order slip can never be used as an invoice in shipping.

When to use a packing slip instead of an invoice?

A packing slip includes the packaging details, whereas an invoice includes the  payment details. So, these two can never be replaced by each other. 

However, in certain situations where your product matters more than it’s price, like sending gifts or in the case of physical shopping, sometimes the invoice can be skipped.

Is a commercial invoice a packing slip?

No, a commercial invoice is a special type of invoice used for international shipments. It contains extra information required by customs authorities, like product descriptions, values, and weights. But, it’s still an invoice, not a packing slip.

So, remember, packing slips are for shipping, and invoices are for billing. You always need to send them separately for smooth order processing.

How to create packing slip and invoice in WooCommerce?

WooCommerce stores generally sell their products internationally, and you can receive an order any time of the day or night. And busy WooCommerce stores receive orders in bulk numbers every day.

Therefore, it’s not a viable option for you to create invoices manually, one by one. You need to automate this process.

Even though the default WooCommerce system doesn’t offer invoice and packing slip creation, a number of plugins are available for you to do the work.

One such automated solution for managing delivery slips and invoices is the Woocommerce invoice & packing slip generator-Challan. It is available for free in the WordPress repository, and the great news is that it can create both packing slips and invoices and even delivery notes for your orders.

Challan helps you automate the whole process of invoice creation. As soon as a customer completes an order, the plugin automatically creates an invoice for that purchased order and attaches it to the order confirmation email.

In addition to that, you can download invoices, packing slips, and shipping labels from individual order pages.

Challan also has a paid version called Challan pro with added features.

The most excellent feature of Challan pro is it lets you customize your packing slip and an invoice extensively. 

You can also create custom billing templates by adding custom meta fields such as a paid stamp, thank you emails, a custom footer, an authorized sign, etc.

Again, Challan Pro offers an array of custom templates for you to personalize the appearance of your invoices. You can also add a background image for your packing slip and invoice template.

Overall, if you are running a WooCommerce store, then Challan is the best solution to create and send packing slips and invoices.

Key features of Challan:

• Easy-to-use user interface.
• It enables you to create invoices, packing slips, shipping labels, and credit notes.
• It automatically attaches invoices and even packing slips to the order confirmation emails or to your chosen emails.
• You can customize WooCommerce email templates to directly forward the packing slip to your shipping department.
• Allows you to extensively customize packing slips and invoices with CSS and background images.
• Supports adding custom fields such as product and order meta data.
• Offers a range of premade template layouts for invoices.
• Supports adding product attributes such as SKU, category, description, etc., to the packing slip and invoice.
• Allows you to attach static files such as terms & conditions documents.

But, how do I create a packing slip?

Well, creating a packaging slip using Challan is way simpler than you think. It includes only 3 steps:

Step 1: Install Challan from your WordPress dashboard.

Step 2: Once you activate the plugin, simply go to Challan >> Settings >> Packing Slip. Then you’ll find all the configuration options to create a customized packing slip.

Bonus Tip:

Still struggling to set up the packing slips with the suitable parameters? 

Then there is a great news for you. Challan provides you pre-made packing slip templates to create one. 

Step 3: Now, just hit on save changes and your packing slip is ready to download and print.

So simple, right?

Now, how do you create an invoice?

Challan gives you a 3-in-1 package for creating packing slips, invoices, and even delivery slips. So you can easily create an invoice for your customers.

Step 1: If you’ve already installed Challan, simply go to Challan >> Settings >> Invoices.

Step 2: Still, you can configure the invoice settings from there. However, Challan gives you six built-in professional invoice pdf templates to make the creation a breeze. Just select one and include the necessary details.

Step 3: Finally, save the changes and send the e-invoice to your customer via email. Again, you can automate the mailing process by pre-selecting the order status.

Step 4: You can also download the invoice easily to keep track of your accounts management.

FAQs:

Conclusion:

Both the packing slip and the invoice have remarkable importance in the order fulfillment process. These documents help you stay organized and show your professionalism.

And if you use automated plugins like Challan, it’ll not only instantly create these documents, but you also don’t have to worry about any errors or mismanagement.

We hope this article on packing slip vs invoice help you understand the importance and difference between them.