Make a delivery challan

Send goods without an invoice under Rule 55, move stock between your own godowns, print the challan, and convert it to a sales invoice later.

A delivery challan goes with goods that leave without a tax invoice, for example goods sent on approval, for job work, as a sample or for an exhibition. It reduces your stock but makes no accounting entry. You can turn it into a sales invoice later.

Before you start

• Create the customer in Customers and the items in Products. You can also add them from the challan screen.
• If GST registration is on, every item needs an HSN code and a unit (UOM). See GST configuration.
• To use your own challan numbering, set up a Delivery Challan series in Invoice series. Without one, numbers run as DC/001, DC/002 and so on.
• To move goods between your own godowns, first switch on Location-wise stock and add your godowns with their addresses.

Steps

1. Open Transactions > Delivery Challans.
2. Check the number under CHALLAN NUMBER. It fills in by itself.
3. In Consignee / Customer \*, pick the customer.
4. Check the Date.
5. In Purpose, choose why the goods are going. See the list below.
6. Under LINE ITEMS, pick the product in Select product. HSN, unit and rate fill in from the product.
7. Enter the Qty. Change the Rate if needed. If GST is on and the purpose is Supply on Approval, check the GST%.
8. Click Add Item for each extra product. Use the delete icon at the end of a row to remove it.
9. Click More options · transport, e-way bill, reference if you need to add transport details or notes.
10. Click Save challan. A green box shows the saved challan number with Print and Convert to invoice buttons.

You can also scan a barcode in the scan box above the item lines. Each scan fills the next empty line. See Barcodes.

Purposes

Move stock between your own godowns

1. In Purpose, choose Stock Transfer (own godown). The customer box is replaced by two godown boxes.
2. In Dispatch from (godown), pick the godown the goods leave from.
3. In Ship to (godown), pick the godown the goods go to.
4. Read the address shown under each box. This is what will print on the challan.
5. Add the items and click Save challan.

Your total stock stays the same. Only the godown changes. The items are valued at their current stock cost, not at the rate you type.

Change the challan number

1. Click the pencil icon inside the Challan No. (auto) box.
2. Type your own number. The box now reads Challan No. (manual).
3. Click the icon again to go back to the automatic number.

The number must be unique in the financial year. The number of a cancelled challan can never be used again.

Paperwork-only challan

1. Open More options · transport, e-way bill, reference.
2. Under STOCK HANDLING, untick the box. It now reads Do NOT reduce from stock (paperwork only).
3. Save the challan.

Use this only when the goods movement is already recorded somewhere else. Leave it ticked (Reduce from stock on save) in all other cases.

Edit a challan

1. Find the challan under Recent challans at the bottom of the page and click it. You can type a number or customer in Search number or customer… to find it.
2. Make your changes.
3. Click Update challan. Click Cancel to leave without saving.

You can edit only an Open challan. Invoiced and cancelled challans cannot be edited.

Print a challan

1. Click the print icon on the challan in Recent challans or in the register. Or click Print right after saving.
2. On the print page, click Print.
3. To save a PDF, choose Save as PDF as the printer in the print window.

The challan prints as one copy marked as issued under Rule 55. If the challan has an e-way bill, the e-way bill prints on its own page after it. Print more copies from the print window if the transporter and consignee each need one.

Convert to a sales invoice

1. Click the Convert to invoice icon on an Open challan.
2. Read the message and click Convert.
3. The challan status changes to Invoiced. Click the View Invoice icon to open the new invoice.

The invoice gets the challan's date, items, quantities and rates, and the next number from your default sales series. Stock is not reduced again, because the challan already reduced it. Open the invoice and check the GST on each line before you share it. See View, print and share an invoice.

Cancel a challan

1. Click the Cancel icon on an Open challan.
2. Click Confirm. Click Keep to go back.

The stock that left on this challan comes back. A challan that has been converted to an invoice cannot be cancelled.

E-way bill

When GST is on, use the E-Way Bill button on a saved challan to make an e-way bill. See E-way bill.

Challan register

1. Open Registers > Challan Register.
2. Set From and To dates. They start at your current financial year.
3. Filter by Status, Type or Customer, or search by challan number or vehicle number.
4. Read the totals in the cards at the top: number of challans, Total Qty, value and Grand Total.
5. Click Export Excel to download the list you see.
6. Click Clear filters to reset.

Each row has these icons: Duplicate (Alt+2 style) opens a new challan with the same customer and items, View / edit opens it for editing, Print challan prints it. Open challans also show Convert to invoice and Cancel challan. Invoiced challans show View Invoice. Click New Challan to make a fresh one.

Fields

Common problems

• Please select a customer — Pick a customer in Consignee / Customer \*. Every purpose except a godown transfer needs one.
• Choose both From and To locations — For a stock transfer, fill both godown boxes.
• From and To locations must be different — Pick two different godowns.
• Add at least one item with quantity — Pick a product and enter a quantity above zero on at least one line.
• Line 1: HSN and UOM are mandatory (required for E-Way Bill per NIC). — Fill the HSN and unit on that line, or fix them in the product master.
• Line 1: UOM is mandatory. — Fill the unit on that line.
• "…" is not in your godown list or … has no address on file — Add the godown, or its address, under Location-wise stock.
• Challan number '…' already exists in this financial year. — Type a different number, or switch back to the automatic number.
• Cannot edit — already invoiced — Make changes on the invoice instead.
• Cannot cancel — already converted to invoice — Cancel the sales invoice from the Sales register if the sale did not happen.

Related

• Create a sales invoice
• Sales register
• E-way bill
• Location-wise stock
• Returnable crates
• Invoice series

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