Understanding Delivery Challans

A Delivery Challan is a document issued when goods are being transported from one place to another, which may or may not result in a sale. Delivery Challans are sent along with the shipment of goods.

When is a Delivery Challan issued?

When the quantity of goods delivered is not known at the time of dispatch. For example, a supply of liquid gas.
When you create a transfer order based on the quantity being replaced for reasons other than sales. For example, when transferring goods from one warehouse to another.
When supplying goods for Job Work.
When goods are transported in a semi-assembled state or as separate parts.

Life Cycle

A delivery challan goes through different stages based on whether goods are relocated or delivered as part of a sale.

When a delivery challan is created, it starts in the Draft status. Once the goods are dispatched, it moves to the Open status, indicating that the goods are in transit.

Relocating Goods

When goods are moved between locations without a sale, such as internal business transfers, the delivery challan is updated accordingly. It is marked as Delivered if the goods reach the destination, or Returned if the goods are sent back.

Delivering Goods

When goods are delivered as part of a sale, the delivery challan progresses based on how the sale is completed. If the delivery is completed in full, it can be converted into an invoice and marked as Delivered. If the delivery is partial, it can be partially invoiced and returned items can be recorded. If the sale does not proceed, the delivery challan is marked as Returned.

This lifecycle ensures that delivery challans reflect the movement of goods and their invoicing status at every stage.

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