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Delivery Challan

A Delivery Challan is a formal document issued by a company to authorize the delivery or dispatch of goods. It accompanies the shipment and lists the items being delivered, along with their quantities and other relevant details. The Delivery Challan serves as proof of dispatch but is not an invoice. It is used to ensure that the recipient receives the correct goods and quantities.

Purpose

  • To authorize and document the dispatch or delivery of goods from the warehouse or supplier.
  • To provide a detailed list of items and quantities being shipped.
  • To facilitate smooth receipt and verification of goods by the recipient.
  • To act as a reference document for inventory updates and reconciliation.
  • To support logistics tracking and audit processes.

Key Features

  • Itemized List: Includes detailed information about products dispatched, including descriptions, quantities, and unit measures.
  • Delivery Authorization: Serves as an official document permitting the release of goods from the warehouse or supplier.
  • Reference Information: May link to related Purchase Orders, Sales Orders, or dispatch instructions.
  • Receiver Acknowledgement: Space for the recipient to acknowledge receipt, often including signature and date.
  • Transport Details: Information about shipping method, vehicle, or courier details (optional).
  • Multiple Copies: Typically issued in multiple copies for sender, receiver, and accounting records.
  • Non-Invoice Document: It does not indicate payment terms or amounts, only delivery details.

Workflow

  1. Generate the Delivery Challan listing all items to be delivered.
  2. Authorize the dispatch through the relevant department or personnel.
  3. Attach the Delivery Challan with the shipment to the recipient.
  4. The recipient verifies and signs the Delivery Challan upon receipt.
  5. Use the Delivery Challan to update inventory records and track goods movement.
  6. Retain copies for internal audit and logistics tracking.

Access Path

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The Delivery Challan plays a crucial role in documenting and authorizing the movement of goods, ensuring smooth and accountable delivery operations within your organization.