Receiving raw materials is not only about unloading cartons from a vehicle. One of the first and most important GMP activities is verifying the Delivery Challan (DC) and Invoice before accepting the shipment.
Many warehouse deviations, inventory mismatches, payment disputes, and audit observations start because these documents were not checked properly.
A warehouse person should never assume that the material is correct just because it arrived from an approved vendor. Every shipment must be verified carefully before unloading and acceptance.
This guide explains the complete process in simple language with practical pharmaceutical examples.
Why Delivery Challan and Invoice Verification is Important
Before accepting any pharmaceutical material, the warehouse team must ensure that the supplier has delivered exactly what the company ordered.
Proper verification helps to:
- Prevent receipt of wrong materials
- Avoid quantity mismatch
- Confirm the correct supplier
- Prevent duplicate billing
- Ensure traceability
- Support inventory accuracy
- Meet GMP and audit requirements
This activity protects both product quality and company finances.
What is a Delivery Challan?
A Delivery Challan (DC) is a document issued by the supplier while transporting goods.
It mainly confirms that the supplier has dispatched the material.
Normally, a delivery challan contains:
- Supplier name
- Delivery Challan Number
- Date
- Purchase Order Number
- Material description
- Material code
- Batch/Lot Number
- Quantity supplied
- Number of containers
- Vehicle details (if applicable)
The delivery challan is mainly used for physical verification during receipt.
What is an Invoice?
An invoice is a commercial document used for billing.
It confirms the value of goods supplied and contains financial information.
Generally, an invoice includes:
- Invoice Number
- Invoice Date
- Supplier GST details
- Buyer details
- Purchase Order reference
- Material details
- Quantity
- Unit Price
- Total Amount
- Tax details
- Transport information
Warehouse personnel mainly verify the material-related information, while the finance department processes payment.
Documents Required During Material Receipt
Before unloading begins, collect all available documents from the transporter.
Usually these include:
- Delivery Challan
- Tax Invoice
- Purchase Order reference
- Transport documents
- Certificate of Analysis (if applicable)
- Packing List (if provided)
Never start the receipt process without checking the documents.
Step-by-Step Procedure to Check Delivery Challan and Invoice
Step 1: Receive Documents from the Driver
The transporter hands over all shipping documents at the warehouse gate.
Before unloading:
- Check whether documents belong to your company.
- Ensure all pages are available.
- Verify that documents are original or company-approved copies.
Do not rely only on verbal information from the driver.
Step 2: Verify Supplier Name
Compare the supplier name on the documents with the approved supplier listed in the Purchase Order.
Example:
Purchase Order Supplier:
ABC Chemicals Pvt. Ltd.
Delivery Challan:
ABC Chemicals Pvt. Ltd.
Invoice:
ABC Chemicals Pvt. Ltd.
This is acceptable.
If the documents mention another supplier without approval, stop the receipt process and inform procurement.
Step 3: Verify Purchase Order Number
Every material should normally be linked to an approved Purchase Order (PO).
Check that:
- PO Number matches.
- PO is active.
- Material belongs to that PO.
Example:
PO: PO-45892
Delivery Challan: PO-45892
Invoice: PO-45892
Everything matches.
Step 4: Match Material Description
The material name should be identical on:
- Purchase Order
- Delivery Challan
- Invoice
Example:
Purchase Order:
Paracetamol IP
Delivery Challan:
Paracetamol IP
Invoice:
Paracetamol IP
No discrepancy exists.
Step 5: Verify Material Code
Many companies use internal or supplier material codes.
Confirm that the code matches the Purchase Order.
Example:
PO Material Code:
RM-1025
Delivery Challan:
RM-1025
Invoice:
RM-1025
Matching codes reduce the risk of receiving the wrong material.
Step 6: Verify Batch Number
Batch traceability is one of the most critical GMP requirements.
Ensure that:
- Batch number is printed correctly.
- Batch number matches the physical labels on containers.
- No overwriting or correction is present.
Example:
Delivery Challan:
Batch No. PCM240501
Container Label:
PCM240501
Invoice:
PCM240501
All three should match.
Step 7: Verify Quantity
Check whether the delivered quantity matches the Purchase Order.
Example:
Purchase Order:
100 Bags
Delivery Challan:
100 Bags
Invoice:
100 Bags
Physical Count:
100 Bags
No discrepancy exists.
If only 98 bags arrive, record the shortage immediately.
Step 8: Verify Unit of Measurement
Ensure units are identical.
Examples:
- Kg
- Bags
- Drums
- Bottles
- Cartons
- Liters
Example:
PO:
500 Kg
Invoice:
500 Kg
Not:
500 Bags
Incorrect units may lead to inventory errors.
Step 9: Verify Manufacturing and Expiry Dates (If Applicable)
For pharmaceutical raw materials, check:
- Manufacturing Date
- Expiry Date
- Retest Date
Example:
Manufacturing:
March 2026
Expiry:
February 2031
Material should comply with the company’s shelf-life acceptance policy.
Step 10: Verify Number of Containers
The document should mention the total number of packages.
Example:
Delivery Challan:
25 Drums
Physical Count:
25 Drums
If only 24 drums arrive, record the shortage before unloading is completed.
Step 11: Check Invoice Details
Warehouse personnel should verify basic invoice information such as:
- Invoice Number
- Invoice Date
- Supplier Name
- Material Description
- Quantity
- PO Reference
Financial calculations are generally verified by the finance department.
Step 12: Record Any Discrepancy
If any mismatch is found, do not ignore it.
Examples include:
- Wrong batch number
- Wrong material
- Short quantity
- Extra quantity
- Damaged shipment
- Incorrect document
Immediately inform:
- Warehouse Supervisor
- Quality Assurance
- Purchase Department
Record the discrepancy according to company procedures.
Real-Life Example
A pharmaceutical company ordered:
- Lactose Monohydrate
- Quantity: 50 Bags
The delivery challan showed:
50 Bags
However, physical verification found only 49 bags.
The warehouse team immediately informed procurement and recorded the shortage on the Goods Receipt Note (GRN). The supplier later acknowledged that one bag had been left behind during loading and delivered it the next day.
Because the discrepancy was identified during receipt, inventory remained accurate, and payment was processed only after the complete quantity was received.
Common Mistakes During Document Verification
Many warehouse teams make avoidable mistakes, such as:
- Accepting material without checking documents
- Ignoring batch number differences
- Not comparing with the Purchase Order
- Counting containers incorrectly
- Accepting handwritten corrections without authorization
- Forgetting to record shortages
- Verifying only the invoice and ignoring the delivery challan
Even a small oversight can create inventory, quality, and audit issues.
GMP Best Practices
Follow these practices to ensure an audit-ready receipt process:
- Verify documents before unloading whenever possible.
- Match every shipment with the approved Purchase Order.
- Cross-check material labels with document details.
- Record shortages, excess quantities, or damages immediately.
- Never overwrite information on supplier documents.
- Escalate discrepancies to QA and Procurement without delay.
- Maintain complete document traceability for every receipt.
Frequently Asked Questions (FAQs)
What is the difference between a delivery challan and an invoice?
A delivery challan confirms the dispatch and delivery of goods, while an invoice is a billing document used for payment.
Can warehouse personnel approve invoice payments?
No. Warehouse personnel verify material-related details. Payment approval is generally handled by the finance department after successful receipt and verification.
Why should the Purchase Order number match the delivery documents?
It confirms that the supplier has delivered materials against an approved order and prevents unauthorized or incorrect receipts.
What should be done if the quantity does not match?
Record the discrepancy immediately, inform QA and Procurement, and follow the company’s deviation or shortage procedure.
Why is batch number verification important?
Batch numbers ensure complete traceability, support quality investigations, and are essential during audits and product recalls.
Conclusion
Checking the Delivery Challan and Invoice is one of the first quality checkpoints during pharmaceutical material receipt. A few minutes spent verifying supplier details, purchase order references, material description, batch number, quantity, and container count can prevent inventory errors, financial disputes, and GMP observations later.
A disciplined document verification process ensures that only the correct materials enter the warehouse, supporting product quality, regulatory compliance, and accurate inventory management.
Suggested Internal Links
- Material Receipt Procedure in Pharma
- Packaging Material Receipt Procedure
- Vendor Delivery Verification During Material Receipt
- Goods Receipt Note (GRN) in Pharma
- Quarantine Area in Pharmaceutical Warehouse
- FIFO vs FEFO in Pharmaceutical Warehouse
- Warehouse Documentation in Pharma
Authoritative References
- World Health Organization (WHO) – Good Manufacturing Practices (GMP)
- US FDA – Current Good Manufacturing Practice (21 CFR Parts 210 & 211)
- European Commission – EU Guidelines for Good Manufacturing Practice (EudraLex Volume 4)
- PIC/S Guide to Good Manufacturing Practice
- ICH Q9(R1) – Quality Risk Management
- ICH Q10 – Pharmaceutical Quality System
Saurabh Saini is a pharmaceutical warehouse professional with over 3 years of hands-on experience in GMP-regulated manufacturing. He currently works as a Junior Officer – Warehouse at Abbott Healthcare and previously served as an Assistant Officer at Mankind Pharma. His expertise includes Raw Material Receipt, Raw Material Dispensing, Warehouse Operations, Inventory Management, GMP documentation, and SOP implementation. Through Pharma GMP Guide, he shares practical GMP knowledge, SOPs, regulatory guidance, and pharmaceutical best practices to help students and industry professionals.
