A Delivery Note is an inventory voucher used when goods are dispatched to the customer before generating the Sales Invoice. It records the physical movement of goods from the warehouse to the customer.
Lesson Objective
Learn how to create Delivery Notes, dispatch goods, manage deliveries and convert Delivery Notes into Sales Vouchers in Tally Prime.
1. What is a Delivery Note?
A Delivery Note is prepared when goods leave the warehouse and are delivered to the customer.
Contains
Example
Customer Name
ABC Traders
Stock Items
Laptop, Printer
Quantity
20 Units
Delivery Date
28 July 2026
Transport Details
Blue Dart Logistics
Delivery Address
Patna, Bihar
2. Why is a Delivery Note Important?
Records dispatch of goods.
Tracks inventory movement.
Acts as proof of delivery.
Supports transport documentation.
Reduces delivery disputes.
Helps prepare Sales Invoice later.
Tracks pending invoices.
Improves warehouse management.
A Delivery Note is created before the Sales Voucher when goods are dispatched separately from billing.
3. Features of Delivery Note
Feature
Benefit
Inventory Tracking
Records stock movement.
Delivery Challan
Proof of goods dispatch.
Partial Delivery
Supports multiple deliveries.
Sales Voucher Conversion
Create invoice from Delivery Note.
Transport Details
Easy shipment tracking.
4. Example of Delivery Note
Soopro Computers dispatches 15 Desktop Computers to XYZ School.
Item
Quantity
Status
Desktop Computer
15
Dispatched
The customer receives the goods first, and the Sales Invoice can be generated later.
5. Delivery Note Workflow
Receive Sales Order.
Prepare goods in warehouse.
Create Delivery Note.
Dispatch goods.
Customer receives goods.
Create Sales Voucher.
Generate Invoice.
Receive Payment.
Delivery Notes mainly record inventory movement. The accounting entry is created later through the Sales Voucher.
6. How to Enable Delivery Note in Tally Prime
Delivery Note is an optional Inventory Voucher. Before using it, you must enable Inventory Vouchers in Tally Prime.
Steps
Open Tally Prime.
Press F11 (Features).
Select Inventory Features.
Enable Use Tracking Numbers (Delivery/Receipt Notes).
Press Ctrl + A to Save.
After enabling this feature, Delivery Note becomes available in Inventory Vouchers.
7. Steps to Create a Delivery Note
Open Voucher Entry.
Select Delivery Note.
Select the Customer (Party Ledger).
Choose the Sales Order (if available).
Select the Stock Item.
Enter the Quantity to be delivered.
Select the Godown (Warehouse).
Enter Tracking Number and Transport Details.
Enter Delivery Address and Narration.
Press Ctrl + A to Save.
After creating the Delivery Note, the dispatched goods can later be converted into a Sales Voucher.
8. Delivery Status
Every Delivery Note moves through different stages until the delivery process is completed.
Status
Description
Pending
Goods not yet dispatched.
Partially Delivered
Only some items have been delivered.
Delivered
All ordered goods have been dispatched.
Cancelled
Delivery cancelled before dispatch.
Delivery Status helps businesses monitor pending deliveries and improve customer service.
9. Important Fields in Delivery Note
Field
Description
Date
Delivery Date.
Tracking Number
Unique Delivery Reference.
Customer Ledger
Customer Name.
Sales Order Number
Reference to Sales Order.
Stock Item
Product Delivered.
Quantity
Delivered Quantity.
Godown
Warehouse from which goods are dispatched.
Transport Details
Vehicle Number, Transporter Name etc.
Delivery Address
Customer Delivery Location.
Narration
Additional Remarks.
Entering complete delivery details makes dispatch tracking easy and avoids customer disputes.
10. Common Mistakes While Creating Delivery Notes
Common Mistake
Correct Practice
Selecting the wrong Customer.
Verify the Customer Ledger.
Incorrect Quantity.
Match the quantity with the Sales Order.
Wrong Godown.
Select the correct warehouse.
Missing Tracking Number.
Always maintain proper tracking references.
Incorrect Delivery Address.
Verify the customer's delivery location.
Not entering Transport Details.
Record vehicle number and transporter information.
Saving without checking stock.
Confirm stock availability before dispatch.
Ignoring partially delivered orders.
Monitor pending deliveries regularly.
Incorrect Delivery Notes may lead to wrong deliveries, customer complaints, inventory mismatches and delayed invoicing.
11. Real Business Case Studies
Let's see how Delivery Notes are used in different industries.
Business
Delivery
Purpose
Retail Shop
Delivered Grocery Items to Customer
Proof of Dispatch
Medical Store
Delivered Medicines to Hospital
Record Medicine Supply
Computer Institute
Delivered 30 Computers to School
Inventory Movement
Furniture Showroom
Delivered Office Chairs
Customer Delivery Confirmation
Electronics Shop
Delivered LED TVs
Transport Tracking
Manufacturing Company
Dispatched Finished Goods to Dealer
Dispatch Documentation
Delivery Notes provide proof that goods have been dispatched from the warehouse to the customer.
12. Delivery Note vs Sales Order vs Sales Voucher
Delivery Note
Sales Order
Sales Voucher
Goods are Dispatched
Customer Places Order
Sale is Recorded
Inventory Movement
No Inventory Movement
Accounting Entry
Before Sales Invoice
Before Delivery
After Delivery
Delivery Proof
Customer Commitment
Tax Invoice
Can be converted into Sales Voucher
Can be converted into Delivery Note
Final Sales Entry
Easy Trick
📝 Customer Orders Goods → Sales Order
🚚 Goods Leave Warehouse → Delivery Note
🧾 Invoice Generated → Sales Voucher
13. Professional Tips & Dispatch Management
Always verify stock before dispatch.
Check customer delivery address carefully.
Mention transporter name and vehicle number.
Use Tracking Numbers for every dispatch.
Pack goods properly before shipment.
Verify quantity with Sales Order.
Obtain customer acknowledgement after delivery.
Convert Delivery Note into Sales Voucher without delay.
Maintain dispatch records for future reference.
Monitor pending deliveries every day.
Large companies use Delivery Notes to track dispatches separately from billing and improve logistics management.
14. Practical Exercise & Interview Questions
Practical Exercise
Create a Delivery Note for a Laptop.
Create a Delivery Note using an existing Sales Order.
Dispatch goods from a selected Godown.
Enter Transporter Name and Vehicle Number.
Create a Partial Delivery Note.
Convert the Delivery Note into a Sales Voucher.
Check Delivery Outstanding Report.
Print the Delivery Challan.
Interview Questions
What is a Delivery Note?
Why is a Delivery Note used?
Does a Delivery Note create an accounting entry?
When should a Delivery Note be created?
Difference between Delivery Note and Sales Voucher?
Difference between Delivery Note and Sales Order?
Can a Delivery Note be modified?
Can partial deliveries be recorded?
What is a Tracking Number?
Why is the Godown selected?
Why are transport details important?
Can one Delivery Note contain multiple items?
How do you convert a Delivery Note into a Sales Voucher?
What is a Delivery Challan?
How does a Delivery Note help inventory management?
Can a Delivery Note be cancelled?
What reports are updated after a Delivery Note?
How are pending deliveries tracked?
What precautions should be taken before dispatch?
Why are Delivery Notes important in business?
15. Lesson Summary
Learned the purpose of Delivery Notes.
Recorded dispatch of goods.
Tracked inventory movement.
Managed transport and dispatch details.
Handled partial deliveries.
Converted Delivery Notes into Sales Vouchers.
Compared Delivery Note, Sales Order and Sales Voucher.
Learned professional dispatch management.
Completed practical exercises.
Prepared for accounting interviews.
Congratulations!
You can now confidently create and manage Delivery Notes in Tally Prime for dispatch management, inventory tracking and customer deliveries.