Sales: Quotation to Invoice

The documented sale to a known party: Sales Quotation, Sales Order, Tax Invoice (or Sales Invoice for a non-GST business), Delivery Challan, Delivery Run, Return / Credit Note. Each step can be raised from the one before it, keeping the reference, and each one is a voucher in the same book.

Where it is in the app

POS page: Sales menu - Counter Sale, Counter Return, Tax Invoice / Sales Invoice, Waiter POS, Return / Credit Note, Sales Quotation, Sales Order, Sales Delivery Challan, Delivery Run, Sales Delivery Challan Return. Which appear follows Settings > Transaction > Sale. Dedicated shells offer Sales Invoice / Sales Order where the trade needs it (jewellery, construction, workshop, field sales owner).

Document chain

flowchart TD
    Q[Sales Quotation] -->|accept| O[Sales Order]
    O -->|deliver| DC[Delivery Challan]
    O -->|bill| I[Tax Invoice]
    DC -->|bill| I
    I -->|return| CN[Return / Credit Note]
    DC -->|return before billing| DCR[Challan Return]
    I --> PI[Payment In]
    DC --> DR[Delivery Run
batch to a rider · settle on return]
    I --> EI[e-Invoice IRN · e-Way Bill]
    style I fill:#d9f5ec,stroke:#20c997,stroke-width:2px

Only the invoice and the credit note move accounts; the quotation and order are commitments, the challan moves stock.

Each document

Document	Moves	Use
Sales Quotation	nothing	A priced offer; print or WhatsApp it; convert to order or invoice.
Sales Order	nothing (reserves)	Confirmed order, advance can be taken; feeds dispatch and the invoice. Field reps and the buyer app create these.
Delivery Challan	stock	Goods leave before the bill; e-Way Bill can ride on it.
Tax Invoice / Sales Invoice	stock (if not already) + accounts	The bill: party, GSTIN, place of supply, tax breakup, terms, payment or credit.
Return / Credit Note	stock back + accounts	Returns against an invoice; reduces the party's balance.
Delivery Run	van stock	Hand a set of bills to a delivery person, mark delivered / returned, settle cash.

The invoice screen

Party - customer with address, GSTIN, state (place of supply), due days and credit limit. Cash party for one-off B2C.
Lines - item, batch, unit, quantity, free quantity, rate tier, discount, tax; scheme and commission columns for wholesale; vehicle and odometer for a workshop; jewellery valuation for a jeweller.
Charges - freight, packing, delivery, cooly and your own labelled charges, as amount or percent, taxable or not.
Totals - bill discount, round off, TDS / TCS where applicable, tax excluded / included toggle.
Payment - full, part or credit with due date; multiple tenders.
Transport - vehicle, transporter, distance and document for the e-Way Bill; export details for exports.
After save - print on the invoice template, WhatsApp the PDF, generate IRN, open the party statement.

Which document do I use?

flowchart TD
    A[A customer wants something] --> B{Have they committed?}
    B -->|just asking a price| C[Sales Quotation]
    B -->|yes, confirmed| D{Goods going now?}
    C -->|accepted| D
    D -->|later| E[Sales Order
advance can be taken]
    D -->|now| F{Billing now too?}
    E --> F
    F -->|no, bill follows| G[Delivery Challan]
    F -->|yes| H[Tax Invoice]
    G --> H
    H --> I{Goods come back?}
    I -->|yes| J[Return / Credit Note]
    I -->|no| K[Payment In when due]

Only the invoice and credit note move the customer’s balance — everything above them is a promise or a movement of goods.

Settings & permissions

Settings > Transaction > Sale chooses which documents exist, default cash / credit, rate tiers, extra charges, negative stock allowed, mandatory party, voucher prefix and numbering (per book when channel stock is on). Permissions: Edit Price in Sales, Product Disc, Voucher Less, Extra Charges, Rate Type Selection, Edit Voucher, Delete Voucher, View Reports.

Reports

Sales Register, Pending Bills, Due Bills, Sales by Product, Returns by Product, Product Partywise Summary, Customerwise Sales, Delivery Summary, Profit, Commission, Non-Transacting Customers, Customer Statement, GST Reports.