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How to Add Delivery Challan

Overview​

This guide walks you through creating a delivery challan to dispatch goods against a sales order. You'll select items to ship, specify delivery details, and generate the challan document for your logistics team.

Prerequisites​

  • User must have Sales or Warehouse role permissions
  • At least one approved Sales Order with pending dispatch quantities
  • Customer master data configured with delivery addresses
  • Items must be available in inventory (if inventory tracking enabled)

Step-by-Step Guide​

Step 1: Navigate to Delivery Challan​

From the left sidebar, click Sales → Delivery Challan

Click the Add Delivery Challan button (blue button with + icon) at the top of the page.

Step 2: Select Shipper Address​

Shipper Address Dropdown:

  • Displays your company name with business locations
  • Shows complete registered address including:
    • Street address and area
    • City, state, and pincode
    • GSTIN with tax scheme (REGULAR/COMPOSITION)
  • This is the "from" address on the challan

Auto-filled from System Settings:

  • Uses default business unit address
  • If multiple locations exist, select the dispatching warehouse

Step 3: Select Delivery Address​

Delivery Address Dropdown:

  • Shows customer name and delivery locations
  • Displays complete shipping address:
    • Customer business name
    • Full address with city, state, pincode, country
  • This is the "to" address where goods will be delivered

Important Notes:

  • Delivery address can differ from customer's billing address
  • Ensure correct address selected to avoid delivery issues
  • If address needs updates, modify in Customer master before creating challan

Step 4: Select Challan Type​

Challan Type Dropdown:

  • Currently displays: Delivery against order
  • This type links challan to a sales order
  • Other types may include job work, sample dispatch (if configured)

For most sales scenarios, use "Delivery against order"

Step 5: Enter Challan Details​

Challan Date:

  • Date when challan is being created
  • Format: DD/MM/YYYY
  • Defaults to today's date
  • Can be changed if backdating required

Challan No.:

  • Auto-generated based on configured numbering series
  • Format example: DC-1004
  • Prefix can be customized in System Settings
  • Number increments automatically
  • Can be manually edited if needed (click pencil icon)

Order# Dropdown:

  • Select the sales order to dispatch against
  • Shows format: SO-### (e.g., SO-999, SO-1002)
  • Only shows orders with pending dispatch quantities
  • Multiple challans can be created for same order (partial deliveries)

Delivery Date:

  • Expected delivery date to customer
  • Format: mm/dd/yyyy
  • Optional field
  • Helps logistics team plan delivery schedule

E-Way Bill No.:

  • Enter e-way bill number if generated for this shipment
  • Required for interstate goods movement above threshold value
  • Leave blank if not applicable
  • Can be added later if bill generated after challan creation

Reference:

  • Optional text field for internal reference
  • Can include: Customer PO number, gate pass number, vehicle number
  • Helps cross-reference with other documents

Step 6: Configure Discount Settings​

Discount Dropdown:

  • Two options available:
    1. Discount at item level - Apply different discounts per line item
    2. Discount at document level - Single discount percentage for entire challan

Unit Is Dropdown:

  • Two options:
    1. Tax Exclusive - Unit prices shown without tax, GST added separately
    2. Tax Inclusive - Unit prices include GST

Choose based on your pricing model and how prices communicated to customer

Step 7: Add Items​

Items Tab (default active tab):

Item Details Column:

  • Click "Select an item" search box
  • Type item name or code to search
  • Select item from dropdown
  • Item description appears below item name

SO Qty Pending Column:

  • Shows remaining quantity to be dispatched from sales order
  • Helps track how much is still pending
  • Useful for partial deliveries

Qty Column:

  • Enter quantity to dispatch in this challan
  • Cannot exceed SO Qty Pending
  • System validates against pending quantity

Unit Price:

  • Auto-filled from sales order
  • Shows price per unit as per order
  • Generally not editable (price locked from SO)

Discount(%):

  • Discount percentage from sales order
  • Auto-populated
  • Can be modified if discount settings allow

Tax Rate:

  • GST rate applicable to the item
  • Shows in dropdown: Select GST, 5%, 12%, 18%, 28%
  • Auto-filled based on item master HSN code
  • Separate columns show CGST, SGST (intrastate) or IGST (interstate)

Tax Amount:

  • Calculated tax value
  • Auto-computed based on: (Unit Price × Qty - Discount) × Tax Rate

Amount:

  • Line item total
  • Formula: (Unit Price × Qty) - Discount + Tax Amount
  • Updates automatically when quantities or rates change

Adding Multiple Items:

  • Click (+) icon at bottom of table to add new row
  • Repeat selection for each item to dispatch
  • Can add multiple line items from same sales order

Step 8: Review Sales Order Details​

Sales Order Tab:

  • Click tab to view linked sales order information
  • Displays table with columns:
    • SO#: Sales order number
    • SO Date: When order was created
    • Expected Delivery: Expected delivery date from order
    • Total Amount: Total order value
    • SO Status: Current status (e.g., In Review, Approved)
    • Dispatch: Dispatch completion percentage (e.g., 24%)
    • Billing: Billing completion percentage (e.g., 0%)

Progress Bars:

  • Dispatch Bar: Visual indicator showing percentage dispatched
    • Color coded: Yellow/orange for in-progress
    • Shows exact percentage on bar
  • Billing Bar: Shows percentage invoiced
    • Green indicates completed, gray indicates pending

Use this tab to:

  • Verify you're creating challan for correct order
  • Check what percentage already dispatched
  • Understand remaining fulfillment requirements

Step 9: Attach Documents (Optional)​

Documents Tab:

  • Click Documents tab next to Items and Sales Order tabs
  • Upload supporting files for the delivery

Common Documents to Attach:

  • Packing list or packing slip
  • Transporter details and LR copy
  • Vehicle number and driver information
  • Quality certificates or test reports
  • Customer authorization for delivery
  • Special handling instructions

Upload Process:

  • Click file upload area or (+) icon
  • Select file from computer
  • Supported formats: PDF, Excel, Word, Images
  • Multiple files can be uploaded
  • Files stored in Vault under Delivery Challan folder

Step 10: Enter Terms & Conditions​

Terms & Conditions Section:

  • Located below items table
  • Pre-populated with default terms like:
    1. Delivery Acknowledgment: Goods delivered as per challan. Recipient must sign and stamp to confirm receipt.
    2. Goods Inspection: Check goods at delivery. Note any shortage or damage on challan copy immediately.
    3. Delivery Responsibility: Risk transfers to recipient upon delivery and acknowledgment. Delivery person not responsible after handover.
    4. GST Compliance: Challan issued per GST norms. Tax invoice follows separately.
    5. Dispute Timeline: Report any discrepancy within 24 hours of delivery. No claims entertained after this period.

Customization:

  • Edit terms as needed for specific situations
  • Add delivery-specific instructions
  • Include customer-specific requirements
  • Terms print on challan PDF

Step 11: Configure Inventory Location​

Show Rates in Challan Checkbox:

  • Check to display unit prices and amounts on printed challan
  • Uncheck to show only quantities (useful for consignment deliveries)
  • Rates still tracked internally even if not shown on printed document

Inventory Location Dropdown:

  • Select warehouse/location from which goods are dispatched
  • Options include:
    • Dropship: Goods directly delivered to customer from supplier (no stock entry)
    • [Location Names]: Your warehouse locations (stock deducted from selected location)

Dropship Option:

  • Use when goods shipped directly from vendor to customer
  • No inventory entry created in your system
  • Challan tracks delivery but stock not affected

Warehouse Location Option:

  • Stock automatically deducted from selected location
  • Inventory value updates
  • Maintains accurate stock levels

Step 12: Review Total Amounts​

Summary Section (Bottom Right):

Sub Total:

  • Sum of all line items before tax
  • Formula: Σ(Unit Price × Qty - Discount)

Taxable Amount:

  • Amount on which GST calculated
  • Usually same as Sub Total (unless additional charges)

CGST / SGST / IGST:

  • Tax breakdown based on shipping addresses
  • Intrastate: CGST + SGST
  • Interstate: IGST
  • Shows percentage and amount

Total Amount:

  • Final challan value
  • Sub Total + All Taxes
  • This is the value for e-way bill (if required)

Verify all amounts match sales order pricing before submitting

Step 13: Save Delivery Challan​

Three buttons at bottom:

Cancel:

  • Discards all entered information
  • No challan created
  • Returns to delivery challan list
  • Use if you want to abandon the process

Save:

  • Saves challan as draft
  • Status remains Draft
  • Can edit later
  • No impact on inventory or order status
  • Use when: Information incomplete, need approval before dispatch

Add:

  • Creates final delivery challan
  • Status changes to Created
  • Challan number locked and sequenced
  • Inventory deducted (if location selected)
  • Sales order dispatch status updates
  • Cannot be edited (only cancelled if needed)
  • Challan PDF can be generated

After clicking Add, system displays success message and challan detail view opens.

Verification​

Confirm delivery challan created correctly:

  • Challan appears in Delivery Challan list with Created status
  • Challan number generated correctly
  • Customer and delivery address accurate
  • All items and quantities correct
  • Sales order dispatch percentage updated
  • Inventory deducted from correct location (if applicable)
  • Supporting documents attached
  • Can download/print challan PDF

Next Steps​

After creating delivery challan:

  1. Download PDF: Generate challan document for dispatch team
  2. Update Logistics: Share challan with transporter and warehouse
  3. Track Delivery: Monitor delivery status and customer receipt
  4. Create Invoice: Generate invoice after delivery confirmation
  5. Update Sales Order: System automatically updates dispatch progress

Common Issues & Solutions​

Issue 1: Sales Order Not Appearing in Order# Dropdown​

Possible Causes:

  • Sales order not approved yet
  • All quantities already dispatched
  • Order cancelled or closed

Solution:

  • Verify sales order status is Approved
  • Check dispatch status - if 100%, all quantities already dispatched
  • Contact sales team to reopen order if needed

Issue 2: Cannot Select More Quantity Than Available​

Error Message: "Quantity exceeds pending SO quantity"

Solution:

  • Check SO Qty Pending column for available quantity
  • Create multiple challans for large orders
  • Verify correct sales order selected
  • Contact sales team if order quantity needs revision

Issue 3: GST Tax Rate Not Auto-Selecting​

Possible Causes:

  • Item master missing HSN code
  • Customer GSTIN not configured
  • Tax configuration incomplete

Solution:

  • Update item master with correct HSN code
  • Verify customer master has valid GSTIN
  • Check Configuration → Finance → Tax Configuration in the Admin console
  • Select GST rate manually if needed

Need help? Contact support at support@bizconnekt.com