A delivery challan is issued to acknowledge the delivery of goods to a party; it will result in decreasing the inventory stock. Once the party has acknowledged receipt of items the next step would be to issue an invoice.

Step 1:  Please go to Income > Sales Order

Step 2: Select the Sales Order for which you need to Create a Delivery Challan.

Step 3: Click on Create Delivery Challan Tab. A new window will open up as below:

1) Select the Date

2) Add in Customer Notes.

3) You can mention the Terms & Conditions as applicable.

Step 4: Click on Generate.  You can see the sample below.

Delivery Challans can always be accessed from the Sales Order.