Estimate vs Delivery Challan vs Invoice vs Delivery Note | How to make Estimate | How to Make Invoice | How to Make Delivery Challan

Created by Book Keeper Team, Modified on Tue, 22 Jul at 1:30 PM by Book Keeper Team

Estimate	Delivery Challan	Invoice	Delivery note
An Estimate or sales quotation is a document that allows a potential buyer/customer to view the cost involved in purchasing specific services or products. It is generally used by suppliers or resellers to begin a business transaction. A professional sales quotation contains an itemized list of products and services defining the prices and terms of sale and payment. Before making a purchase; an estimate is created at the request of a prospective buyer who is interested in knowing the cost of certain products or services.	Transportation of goods requires issuing of Delivery Challan; Goods sent on approval basis, where the goods being sent or taken within the State or outside the State on approval for sale or return basis and are removed before the supply takes place, Challan should be issued at the time of removal of goods.	Sales invoices provide the business with a record of the services they’ve provided to a client, when the services were rendered and how much money the client owes the business. Typically, a sales invoice will include a description of the service provided, the amount owed, and the deadline for payment.	A delivery note is a document that accompanies a shipment of goods and provides a list of the products and quantity of the goods included in the delivery. Using delivery notes help a business get a better overview of their input and output, whilst also giving their customers a way to check they have received all of the products they paid for. If anything is missing, the recipient can quickly respond and contact the sender, using the delivery note to inform both parties what is wrong with the delivery.
If you have created an Estimate it shall not affect any account or inventory in any way.	Delivery challan is issued while the delivery of goods to the party, hence it shall decrease the inventory stock.	In sales invoices, both accounts and inventory are meant to be affected but if you have created a delivery challan beforehand then only accounting shall be affected.	It’s a mere document, it shall not affect either inventory stock or accounts.