DOCUMENT WORKFLOW GUIDE

Delivery Challan vs Invoice

Goods can move without an immediate sale, so a delivery challan should not silently become a normal invoice.

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OLO BOOK · ANDROIDGuide

Choose document type intentionally

Keep challan numbering distinct

Convert only through an explicit workflow

01

Invoice records a sale

A sales invoice records the supply value, applicable tax or non-tax treatment, party balance and payment status. It normally contributes to sales and accounting reports.

02

Challan records movement

A delivery challan is commonly used when goods move for reasons that are not an immediate final sale, subject to applicable rules. The workflow should preserve the selected document type to avoid accidental revenue recognition.

KEY POINTS
01

Choose document type intentionally

02

Keep challan numbering distinct

03

Convert only through an explicit workflow

04

Review tax requirements for the use case

COMMON QUESTIONS

Clear before you act

Does a delivery challan always mean sale?

No. It can document goods movement without an immediate final sale.

Should the app default to challan from a challan action?

Yes. The user intent should be preserved to reduce accidental invoice creation.

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