Jerry was the universal name used by the British and other Allied Nations throughout the latter half of the First World War, and used again extensively during the Second World War. In 1914 and 1915 the ordinary term Fritz, Boche and Alleyman were used. There was a farfetched suggestion that accounted for the adoption of "Jerry" whereby Fritz became Fitz, which in turn suggested the name Fitzgerald. That in turn was shortened to Gerald, which ultimately gave us Gerry or Jerry. More plausibly however, it could simply be an alteration of the word German, or maybe it was influenced from by the Stahlhelm (German - Steel Helemet), which was introduced in 1916 and said by British soldiers to resemble a chamber pot.
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