Delivery Challan is also known as Dispatch Challan. Delivery challan shows the issue of store items by store department. When material is sold to customer or transferred to other branch, or material is returned to the supplier then delivery challan is prepared by store department.

In sale transaction first of all purchase order is received from customer by sales department. Sales department forwards the copy of sales order to the stores department. Then store department issues the material to the customer as per their purchase order.

Deliver challan shows the following details:-

  1. Serial Number of Challan
  2. Date of Challan
  3. Purchase Order Number of customer
  4. Customer’s Name
  5. Sales tax number of customer
  6. Sales tax number of supplier
  7. Particulars relating to items.
  8. Quantity
  9. Rate
  10. Sales Tax
  11. Other Charges.
  12. Total

Minimum four copies of Delivery Challans, are prepared for the following purposes:-

    • One copy is to be sent to accounts department.
    • One copy is to be sent to sales department.
    • One copy is to be given to the customer.
    • Forth copy is retained by store department for their record.

Delivery challans are used almost by all type of organizations.


Delivery Challans are useful in the following cases:-

  1. After the delivery challan is received by the sales department, they can match all the material with the purchase order of the customers and follow up the customers accordingly.
  2. Delivery Challan is very useful for accounts department because accounts department will raise the sales invoices on the customers only when it is confirmed by the store department and sales department. Finally the accounts department matches all the items according to the purchase order of customers and delivery challan. By doing this practice cross check of all the transactions are done. The chances of errors are minimized due to this practice.
  3. Store department will also be responsible for all the items which they confirm the issue of those items.
  4. It is very useful to keep the control on stores because store is as good as cash.