Day 17: Orders, Delivery & Receipt Notes
✅ Today you will learn
- Understand the purchase cycle: PO → GRN → bill
- Understand the sales cycle: SO → challan → bill
- Use order and tracking numbers to link documents
- Record rejections in and out
- Track pending orders and plan purchases
🏢 In the real world
Gupta School places an order for 300 notebooks for the new session. Rohit has only 80 in stock. Without order tracking, the order lives on a slip of paper and is easily forgotten. With TallyPrime’s order processing, the pending order, the stock shortfall and the delivery status are visible to everyone in the shop.
The two cycles
| Voucher | Key | Meaning | Stock effect | Accounts effect |
|---|---|---|---|---|
| Purchase Order | Ctrl+F9 | Order placed on supplier | None | None |
| Receipt Note (GRN) | Alt+F9 | Goods received, bill not yet | Stock ↑ | None* |
| Purchase | F9 | Supplier bill | None if linked to receipt note | Purchases Dr / Supplier Cr |
| Rejection Out | Ctrl+F5 | Goods sent back before the bill | Stock ↓ | None |
| Sales Order | Ctrl+F8 | Order received from customer | None | None |
| Delivery Note (Challan) | Alt+F8 | Goods sent, bill not yet | Stock ↓ | None* |
| Sales | F8 | Customer bill | None if linked to delivery note | Customer Dr / Sales Cr |
| Rejection In | Ctrl+F6 | Customer sends goods back before the bill | Stock ↑ | None |
* Receipt and delivery notes are inventory vouchers; the accounting entry comes with the bill. (Optionally they can be set to post provisional accounting entries – keep it off while learning.) Find them under F10 (Other Vouchers) if they are not on the right button bar.
Switch it on
- 1F11 → Inventory: Enable Order Processing = Yes.
- 2F11 → Enable Tracking Numbers (Delivery/Receipt Notes) = Yes.
- 3Optional: Enable Rejection Notes = Yes.
- 4Ctrl+A – the order vouchers now appear under F10 and on the button bar.
Worked purchase cycle – A4 paper
| Date | Voucher | Reference | Qty | Status after |
|---|---|---|---|---|
| 10-05-2026 | Purchase Order (Ctrl+F9) | PO/1 to Sai Traders | 100 Ream @ ₹270 | Pending 100 |
| 14-05-2026 | Receipt Note (Alt+F9) | Order no. PO/1 → tracking GRN/1 | 100 Ream | Order complete; stock +100; bill pending |
| 15-05-2026 | Purchase (F9) | Tracking GRN/1, invoice SAI/131 | 100 Ream = ₹27,000 | Bill booked; Sai Traders Cr ₹27,000 |
In the Receipt Note, the Order No(s) field lists pending orders of that supplier – pick PO/1 and the items fill in. In the Purchase invoice, the Receipt Note No(s) (tracking) field links the GRN, so stock is not added twice.
Pending sales order and the shortfall
On 12-05-2026 Gupta School sends sales order SO/1: 300 Notebook 200 Pages @ ₹34 = ₹10,200, due 1 June. Stock on 31 May after all May sales: 80.
| Item | Pending sales order | In stock | To purchase |
|---|---|---|---|
| Notebook 200 Pages | 300 | 80 | 220 |
Reports: Display More Reports → Statements of Inventory → Sales Order Outstandings / Purchase Order Outstandings. These show order no., due date, pending quantity and value party-wise or item-wise.
Solved examples
Example 1: Rejection before the bill
Suppose 4 of the 100 reams received on GRN/1 were torn and sent back on 14-05-2026 before the bill came. Enter Rejection Out (Ctrl+F5) against GRN/1 for 4 reams. Stock: +100 – 4 = 96. Sai Traders then bills only 96 reams = ₹25,920. No debit note is needed because the bill never included them.
Rejection Out
- Before the supplier’s bill
- Inventory only
- Linked to the receipt note
Debit Note
- After the bill is booked
- Stock and accounts
- Linked to the purchase invoice
Practice exercises (unsolved – answer hidden)
Try each exercise on paper or in TallyPrime first, then open the answer to check.
🏋️ Practice – do it yourself
Show solution
Pending 70 units. Billed (180 + 250) × ₹42 = ₹18,060.Show solution
(a) Receipt Note Alt+F9 (b) Delivery Note Alt+F8 (c) Rejection In Ctrl+F6 (d) Purchase F9 linked to the receipt note (tracking number).🏅 Job skills unlocked today
Quick quiz
🧠 Quick Quiz – test yourself
Interview corner
💼 Interview Corner
Explain the purchase cycle in TallyPrime.
Purchase Order (Ctrl+F9) → Receipt Note/GRN (Alt+F9) when goods arrive → Purchase invoice (F9) linked by tracking number → Payment (F5). Rejection Out (Ctrl+F5) for goods returned before the bill; Debit Note after.
How do you find orders not yet delivered?
Sales Order Outstandings report (Statements of Inventory) – it lists pending quantity, value and due date by party or item.
Summary
- PO Ctrl+F9 → GRN Alt+F9 → Purchase F9; SO Ctrl+F8 → Challan Alt+F8 → Sales F8.
- Orders do not affect stock or accounts; notes affect stock; invoices affect accounts.
- Rejection In/Out before the bill; Credit/Debit Note after.
- Pending orders minus stock = what to buy (220 notebooks here).
Day 18: stock summary, godown and movement reports, reorder levels and stock valuation (FIFO vs average).
Frequently Asked Questions
Is order processing necessary for a small shop?
Can I close an order that will never be completed?
Tally and TallyPrime are trademarks of Tally Solutions Pvt. Ltd. This is an independent course, not affiliated with or endorsed by Tally Solutions. All business names, GSTINs and figures in the examples are fictional samples.
