Delivery Challan is one of the most important documents that is used by businesses all across the world to record the movements of their goods and services. This supporting document is created when the transportation of goods from one location to another may not necessarily result in a sale. When it comes to generating a delivery challan, it should be done with full attention and care otherwise it may not get approved and raise unnecessary issues in the transaction. This article enlists the five common mistakes that need to be avoided while generating a delivery challan!
Mistakes To Avoid While Generating Delivery Challan
1. Issues In Sending The Delivery Challan
The very first common mistake people make while generating a delivery challan is not sending it at the right time. Know that, a delivery challan must be sent along with the shipment itself. Unnecessary delays will only make the transaction complicated and may also result in the cancellation of the deal. So, always send the challan along with the shipped goods.
2. Not Following The Right Delivery Challan Format
The delivery challan format is another area where most individuals get confused. Again, a poorly formatted challan makes no sense and may lead to a lot of ambiguity and confusion.
Here is what the right delivery challan format looks like :
- Date of transportation and the date of challan
- Serial Number – This is the most crucial detail as it helps in identifying and referring to the challan.
- Full Name, GSTIN and location of the supplier as well as the buyer. If the buyer is not registered, his workplace or business address must be mentioned.
- Other details of shipments such as Description, Taxable Amount, Quantity, HSN Code, GST Rate, CGST/IGST/SGST rate and so on.
- Signature of supplier
- Transportation details including the mode, vehicle type, vehicle number.
3. Not Creating Enough Copies
Another confusion that revolves around delivery challans is the number of copies that need to be generated. Let’s clear it!
As mentioned above, a delivery challan is a piece of document that is used during the transportation of goods from one place to another, which may not necessarily result in sales. This document is attached with the shipment itself and contains all the information regarding the shipment. As a general rule of the thumb, a total of three copies of the delivery challan must be created. These are as follows :
- An original copy for the buyer
- A duplicate copy for the transporter
- A triplicate copy for the sender
4. Errors Regarding The Charges
Not mentioning the original charges of goods included in a shipment is another common mistake suppliers make while generating the delivery challan. Note that, if the charges don’t match the original value of goods, it can affect the buying decision of the customer. On suspecting the abnormalities in pricing, they can drop off the deal. So, make sure to add the charges carefully. The best way to deal with the pricing errors is to generate delivery challan in software that automatically adds the original price and applies the necessary taxes on the same.
5. Clubbing Multiple Delivery Challans to Make One E-way Bill
Multiple delivery challans or even invoices should never be clubbed together for making one e-way bill. Know that, each delivery challan must be considered as a single consignment. So, if you’re sending multiple shipments, generate a separate delivery challan and e-way bill for each shipment. However, if the shipments are going via the same vehicle, then one consolidated e-way bill can be prepared by the transporter but only for transportation purposes.
Keep these five points in mind and you’ll be able to generate the right delivery challan every time.