How to Create a Delivery Challan? A Step-by-Step Guide

How to Create a Delivery Challan? A Step-by-Step Guide

 

 

 

 

 

 

A Delivery Challan is a crucial document for businesses that records the movement of goods from one location to another. Unlike an invoice, it does not indicate a sale but serves as proof of delivery. This document is widely used in industries dealing with logistics, supply chain management, and stock transfers.

In this guide, we’ll walk you through the process of creating a Delivery Challan step by step.

 

What is a Delivery Challan?

A Delivery Challan (also known as a dispatch challan or delivery note) is a document issued when goods are transported without an immediate sale. Common use cases include:

  • Sending goods for job work or repairs
  • Delivering items on an approval basis
  • Stock transfers between branches
  • Sending goods for inspection or replacement
  •  

Key Components of a Delivery Challan

A well-structured Delivery Challan typically includes:

Business Name & Address (Consignor)

  • Buyer/Consignee Details
  • Challan Number & Date
  • Description of Goods (Quantity, Unit, Product Name, etc.)
  • HSN/SAC Code (if applicable under GST)
  • Transport Details (Vehicle Number, Transporter Name)
  • Authorized Signatures
  •  

Step-by-Step Guide to Create a Delivery Challan

Step 1: Select the Right Format

A delivery challan can be created in various formats:

  • Manual Format: Pre-printed challan books
  • Digital Format: Excel or Word templates
  • Automated Format: Billing software like BillClap for quick generation

Step 2: Add Business and Buyer Details

Clearly mention the seller’s name, address, and GSTIN (if applicable) along with the buyer’s details for proper documentation.

Step 3: Assign a Unique Challan Number & Date

Each delivery challan should have a unique serial number and date for tracking and reference.

Step 4: List Product Details

Include the product name, description, quantity, unit price, and HSN code (if applicable) to maintain transparency.

Step 5: Specify the Reason for Delivery

Clearly state the purpose of delivery, such as:

  • For Job Work
  • Stock Transfer
  • On Approval Basis
  • For Repairs

Step 6: Include Transport Details

If transportation is involved, mention the vehicle number, transporter’s name, and mode of transport.

Step 7: Add Signature and Stamp

A delivery challan is considered valid only when signed and stamped by an authorized person.

 

Delivery Challan Format (Sample)

Here’s a basic format for reference:

Company Name: XYZ Pvt Ltd

Address: 123 Business Street, City, State, Pincode

GSTIN: 1234567890ABC

 

Delivery Challan No.: DC-2024001

Date: 01-Apr-2025

 

Buyer Name: ABC Traders

Buyer Address: 456 Market Road, City, State, Pincode

 

Product Details:

----------------------------------------------------

| Item Name | HSN Code | Quantity | Remarks |

|-----------|---------|---------|---------|

| Product A | 1234    | 10     | For Job Work |

| Product B | 5678    | 5      | On Approval |

----------------------------------------------------

 

Transport Details:

Vehicle No.: MH 12 AB 1234

Transporter: XYZ Logistics

 

Authorized Signatory: ______________

 

Conclusion

Creating a Delivery Challan is a straightforward yet essential process for businesses involved in goods transportation. By following this step-by-step guide, you can ensure proper documentation, compliance, and hassle-free logistics.

For seamless challan creation, try BillClap – India’s leading billing software that simplifies invoicing, GST filing, and delivery challans effortlessly.

Start creating delivery challans with ease today!

https://www.billclap.com/delivery-challan-format

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