Invoicing for Wholesale & Distribution

Matching invoices to purchase orders

For most wholesale and B2B relationships, the invoice needs to match a purchase order (PO) issued by the buyer before any payment is approved. Best practice:

Require a PO before picking, packing or dispatching
Reference the PO number prominently on your invoice
Match the line items, quantities and prices exactly to the PO — discrepancies cause payment delays
If the order changes after the PO is issued, obtain an amended PO before dispatching the changed goods

Use our free invoice generator to create a professional tax invoice with all mandatory fields, including space for PO and delivery references.

Packing slips and delivery notes

A packing slip (or delivery note) travels with the goods and enables the buyer to confirm what was received. It is not a tax invoice — it does not need to show prices or GST. The packing slip should include:

Your business name and the buyer's name and delivery address
The PO number
A line-by-line list of goods, SKU codes and quantities
A reference to the invoice number (if invoicing on dispatch)

Send the tax invoice separately by email to the buyer's accounts payable address — do not rely on the invoice travelling with the goods.

Credit account invoicing vs COD

Credit account: You extend trade credit — the buyer pays within agreed terms (e.g. 30 days from end of month). Requires a signed credit application before the first supply. Faster for the buyer, more risk for you. Protect yourself with ROT clauses and PPSR registration.
Cash on delivery (COD): The buyer pays at the time of delivery or before dispatch. No credit risk, but slower to onboard clients. Appropriate for new accounts or small, infrequent buyers.
Proforma invoice: Issued before dispatch to request prepayment. Not a tax invoice — it does not trigger a GST obligation. Once paid, issue a proper tax invoice on dispatch.

Tax invoices for wholesale — mandatory fields

Every B2B tax invoice for a taxable supply must include:

The words "Tax Invoice"
Your ABN
Your business name
Date of issue
Description of goods supplied
GST amount (or statement that GST is included)
Total price payable
For invoices $1,000 or more (inc. GST): the buyer's name and/or ABN

See the full Australian tax invoice requirements for detail on each field.

Dealing with returns and credit notes

When a buyer returns goods or you have under-supplied an order, you must issue an adjustment note (the GST term for a credit note). The adjustment note must include your ABN, the words "adjustment note", the date, description of the adjustment, the GST amount adjusted and the total credit.

Match every adjustment note to the original invoice number. Your accounting system should link them so your accounts receivable ledger is accurate.

PPSR and retention of title

If you supply goods on credit and include a retention of title (ROT) clause in your terms, you must register your security interest on the Personal Property Securities Register (PPSR). Without registration, your ROT clause may be ineffective if the buyer enters administration or liquidation. Registration is low-cost and straightforward. This is especially important for high-value goods and for buyers in financially stressed industries.

Prompt payment terms and escalation

Common wholesale payment terms are net 30 (end of month) or net 30 from invoice date. For regular accounts, send a monthly statement of account to keep the balance front-of-mind. Use our free statement generator to create professional account statements.

If an account exceeds 60 days without payment after reminder, early referral to a collection agency maximises recovery. Merion operates on a commission-only basis — no recovery, no fee.

Frequently asked questions

Can I require a purchase order before invoicing?

Yes — and for wholesale operations, it is strongly recommended. Requiring a purchase order before shipping or invoicing means your invoice can reference the PO number, which accelerates payment through your customer's accounts payable system. Many large retailers and distributors will not pay an invoice without a matching PO.

How do I issue a credit note?

A credit note (also called an adjustment note under GST law) is issued to reduce or cancel a tax invoice. It must include your ABN, the words 'adjustment note', the date, a description of the adjustment, the GST amount adjusted and the total credit. Keep the credit note number linked to the original invoice number in your records. The buyer uses the adjustment note to reduce the GST input tax credit they claimed.

What is retention of title and how does it affect my invoices?

Retention of title (ROT), also called a Romalpa clause, means ownership of goods does not pass to the buyer until the invoice is paid in full. To be effective against a buyer's liquidator or secured creditors, a ROT clause must generally be registered on the Personal Property Securities Register (PPSR). Include your ROT clause in your terms of trade and credit application, and ensure it is agreed before first supply.

When should I put a wholesale debtor to a collection agency?

As a rule of thumb, refer debts over 60–90 days that have not responded to your internal reminder sequence. The sooner you refer, the higher the recovery rate. Commission-only collection means there is no upfront cost — Merion charges only on successful recovery.