This article will help you understand tax invoices and delivery challans and how to distinguish these documents from each other.
A tax Invoice, also known as a Sales Invoice, is a legal document that the seller issues to a buyer, and it includes the details such as:
Suppliers can create a tax invoice before or after the said goods or service has been delivered to customers.
Invoice is vital for accounting as it gives us information about sales transactions.
To create the invoice, you need accounting software like Kernel. The Kernel allows you to share invoices directly with the customer on their E-mail.
In order to ensure that an invoice has been paid, the invoice number should be stated on the sales receipt. This should be matched to the sales receipt in the accounting software. The customer's accounts receivable account is debited for the payment.
If you need more details about the Tax Invoice? Visit the article - Comprehensive Information - What is a GST Tax Invoice? | Meaning, Examples, Templates
A Delivery Challan is a formal document created when goods are transported from one place to another. It is also needed for accounting processes. It should include the following information as
Suppliers should send it together with the shipment of goods or services. As soon as the customer accepts the delivery challan, he acknowledges receipt of the goods.
Wondering how Delivery Challan works? Read the article - Everything you need to know about a delivery challan Free Template.
Here are the main differences between the Delivery Challan and Tax Invoice: