Goods Delivery and Goods Receipts in Tally

Goods Delivery Challan

Delivery Challan is a document of movement of goods, without Invoice being created. Delivery Out (popularly known as Delivery Note) is created by the supplier of goods, while Delivery In (popularly known as Goods Receipt Note or GSN) is created by receiver of goods.

Under GST rules, it is necessary to issue Invoice at the time of movement of Goods. However in some cases, e.g delivery to job workers, sale on approval etc. goods may be delivered without issuing Invoice. Even in case of delivery for supply, Delivery challan are used where invoice could not be issued for some reason but the Invoice is subsequently issued to cover the Delivery challan (Delivery Out). Sometimes, one combined Invoice is created against multiple Delivery Notes issued in a Tax period.

The Delivery Challan looks similar to Invoice. Normally Value is not included. Tax is not included. The delivery challan updates the Stock but does not update accounts (even if Value is entered in Delivery Challan).

Sometimes, goods are received back (delivery In Challan) against the earlier delivery out challan through which goods were sent out. In such case, a delivery In / Rejection In note is created in reference to the earlier delivery out.

You should create Delivery Challan in Tally as usual. However, we briefly explain the salient points of creation of Delivery Challans under GST regime.

Goods Delivery Challan activation in Tally

Click GoT>F11:Features>F2:Inventory to get Inventory Features set up screen.

Under General section, set Yes at Enable Zero Valued transaction to enable entry of only Quantity details, without materials value (zero materials value).
Under Other Features section, set Yes at Use Tracking Numbers (enables Delivery & Receipt Notes). Consequently, relevant buttons and options related to Delivery Challans (Delivery Notes & Receipt Notes) get activated.

Delivery Challan activation in Tally

Goods Receipt Notes entry in Tally

When you receive materials under Delivery Note of the supplier (without Invoice), select (GoT>Inventory Vouchers>F9:Receipt Note) to get Receipt Note entry screen to create Receipt Note.

Goods Receipt Note entry

Enter details as usual, like Purchase Invoice entry :

Goods Receipt Note details : Enter Date of Receipt note (date when materials is received by receiver of goods). At Ref No, enter the reference number of delivery Challan of supplier and date of delivery Challan of supplier . Select Party from whom material received
Item details : Now select the Item. At Tracking Number subscreen , select the Reference number of current Delivery Note from the list of Tracking Number.

Tracking Number entry in Goods Receipt Note in Tally

At Quantity column, enter the quantity received. At Rate column, enter ZERO. The Amount would be zero (DO NOT enter any value in Rate or Amount column). The Amount should be ZERO.

Item allocation in Goods Receipt Note in Tally

The Item entered is listed in the main voucher screen. This way, enter details of all the items received, one by one, with value zero for each Item.

Tax Analysis : When you click A:Tax Analysis, no Amount figures are shown

Stock Report: The receipt note would be reflected in Stock Inwards as per date of Receipt Note and would increase the Stock In hand

Goods Receipt Note Printing in Tally

At Goods receipt note entry screen , Click P:Printing button to get printing screen. You may click relevant button (at right side button bar) to set the respective Printing option. You may click F12:Configure to set the Receipt Note printing Configuration. Type Y to print Receipt Note as per options set .

Goods Receipt Note in print in Tally

Purchase Invoice entry against Goods Receipt Note in Tally

On receiving the materials, select GoT>Accounting Vouchers>F9:Purchase to get Purchase Invoice entry screen , to create a Purchase Invoice, against the Receipt Note.

Purchase Invoice entry against Goods Receipt Note in Tally

At Item allocation screen, the Purchase Invoice is linked to earlier Receipt Note . The Tax Analysis displays the ITC.

Tax Analysis of Purchase Invoice in Tally

GSTR Report : Now the Purchase Invoice has same effect in GSTR-2 and eligible for ITC

Effect of Purchase Invoice in GSTR-2

Stock Report: The Reference of Purchase Invoice would be reflected against Receipt Note entry already captured as per Receipt Note entered earlier. There would be no further impact on Stock for entry of Purchase Invoice (as Stock was already updated on entry of Receipt Note).

Goods Rejection Note in Tally

If the goods received under Receipt Note are Returned (not accepted) or Goods Delivered under Delivery Note are Returned, then you will create a Rejection Voucher – Rejection Out Note against the Receipt Note / Rejection In Note against the Delivery Note to nullify the effect of Receipt / Delivery note.

Goods Rejection Note activation in Tally

To activate Rejection Note (Rejection Out & Rejection In), select GoT>F11:Fetaures>Inventory Features. Under Other Features, set Yes at Use Rejection Inward & Outward Notes to activate Reject Notes (F-1A) to record of Goods returned which were earlier recorded under Delivery Note / Receipt Note, to adjust the stock.

You should not create a Delivery Note for goods returned against earlier Receipt note. Similarly, you should not create a Receipt Note for Goods received back against earlier Delivery Note issued. If you create a new delivery note / Receipt Note in such cases,, these will remain unadjusted for linking with Invoice and create accounting complications.

If the goods are returned against earlier Receipt Note, create a Rejection Out Note.
If the goods are received against earlier Delivery Note, create a Rejection In Note.

Goods Rejection Out Note for goods returned against earlier Goods Receipt Note

On returning the Goods received earlier under Receipt Note, select GoT>Inventory Voucher>F6:Rejections Out to get Rejections Out entry screen

Goods Rejection Out Note linking to Goods Receipt Note in Tally

Enter following details:

Party Ledger : At ledger Account, select the Party ledger whom the materials are returned to. The name of Party & Address is displayed (which you may change in the Rejection Note, if required).
Item details : Now select the Item. At Tracking Number subscreen, select the Reference number of the original Receipt note against which the materials are returned under current Rejection Note . At Quantity column, enter the quantity returned. At Rate column, enter ZERO. The Amount would be zero (DO NOT enter any value in Rate or Amount column). The Amount should be ZERO. The Item entered is listed in the main voucher screen. This way, enter details of all the items received, one by one, with value zero for each Item.

However, when the entire quantity of goods received under Receipt Note are returned through Rejection Note, the stock is nullified. In such case, neither the Receipt Note nor the Rejection Note is displayed in Stock Summary (they are completely hidden in Stock Summary).

Goods Delivery Notes Entry in Tally

When you deliver materials (without Invoice), select (GoT>Inventory Vouchers>F8:Delivery Note) to get Delivery Note entry screen to create a Delivery Note .

Goods Delivery Note entry in Tally

Enter details as usual, like Sales Invoice entry :

Delivery Note details : Enter Date of Delivery note. At Ref No, you may enter any other reference number. Select Party to whom the material is delivered.
Item details : Now select the Item. At Tracking Number subscreen , select the Delivery Note number of current Delivery Note from the list of Tracking Number. At Quantity column, enter the quantity Delivered. At Rate column, enter ZERO. The Amount would be zero (DO NOT enter any value in Rate or Amount column). The Amount should be ZERO .

The Item entered is listed in the main voucher screen . This way, enter details of all the items received, one by one, with value zero for each Item.

Stock Report: The Delivery note would be reflected in Stock Outwards as per date of Delivery Note and would decrease the Stock In hand

Goods Delivery Note Printing in Tally

Click P:Printing button to get printing screen. You may click relevant button (at right side button bar) to set the respective Printing option. You may click F12:Configure to set the Delivery Note printing Configuration. Type Y to print Delivery Note as per options set.

Goods Delivery Note in print in Tally

Sales Invoice against Goods Delivery Note in Tally

To create Sales Invoice against Delivery Note, select GoT>Accounting Vouchers>F8:Sales to get Sales Invoice entry screen.

Sales Invoice entry against Goods Delivery Note in Tally

Enter details as usual in Sales Invoice entry :

Invoice details : Enter Date of Sales Invoice. At Ref No, you may enter any other reference number. Select Party to whom the material is delivered.
Item details : Now select the Item. At Tracking Number subscreen, select the Delivery Note number (from the list of Tracking Number), against which you are creating the current sales Invoice. At Quantity column, enter the quantity Delivered. At Rate column, enter Rate. The Amount would be displayed. The Item entered is listed in the main voucher screen. This way, enter details of all the items received, one by one, with value for each Item.
Tax Classification : At Tax Classification pop up screen, select the Tax Classification from the list
Tax Accounts : At main voucher screen Select the Tax Accounts. The amount is auto computed
Tax Analysis : Click A:Tax Analysis to get the Tax Analysis screen showing details of Taxable Amount and Tax .

Tax Analysis display in Sales Invoice in Tally

Sales Invoice linked with Goods Delivery Note Printing in Tally

At Sales Invoice entry screen, Click P:Printing button to get printing screen. You may click relevant button (at right side button bar) to set the respective Printing option. You may click F12:Configure to set the sales Invoice printing Configuration. Type Y to print Sales Invoice as per options set.

Sales Invoice against Delivery Note in Print

Goods Rejection In Note entry for goods returned against earlier Goods Delivery Note in Tally

On getting the Goods received back against Goods delivered under Delivery Note earlier, select GoT>Inventory Voucher>F6:Rejections In to get Rejections In entry screen

Rejection In Note entry linking earlier Delivery Note in Tally

Enter following details:

Party Ledger : At ledger Account, select the Party ledger whom the materials are returned to. The name of Party & Address is displayed (which you may change in the Rejection Note, if required).
Item details : Now select the Item. At Tracking Number subscreen, select the Reference number of the original Delivery note against which the materials are returned under current Rejection Note. At Quantity column, enter the quantity returned. At Rate column, enter ZERO. The Amount would be zero (DO NOT enter any value in Rate or Amount column). The Amount should be ZERO .

Goods Receipt Note liking with Goods Delivery Note for Goods Returned.

The Item entered is listed in the main voucher screen. This way, enter details of all the items received, one by one, with value zero for each Item.

Goods Delivery Notes Display in Day Book in Tally

At Day Book (GoT>Display>Day Book), the vouchers created (Receipt Note, Delivery Note, Rejection In Note, Rejection out Note etc) are displayed along with other types of vouchers, as usual. In case of In case of Accounting Vouchers the Amount is shown in Debit / Credit column. In case of Inventory Voucher like Rejection In, Rejection Out etc., the quantity (with UoM) is shown in positive (Delivery Note / Rejection Note) / negative quantity (Rejection In / Rejection Out) in respective Inwards / Outwards column.