B2B sales: partners, orders, invoices and reconciliation
Set up B2B partners with credit terms, take and confirm sales orders, fulfil them by transfer, then track invoices, notes, ageing and Tally exports.
On this page
Overview
B2B Sales covers selling in bulk to channel partners and franchises, from order to cash. You set each partner's commercial terms, record their purchase orders as sales orders, ship the goods by transfer, and then follow the tax invoices, credit and debit notes and outstanding balances until they are settled.
Guidelines
Set the partner's terms before the first order
The B2B discount %, Credit limit, Overdue block and Fulfilling warehouse on the partner decide how orders are priced, whether they can be confirmed and where they ship from. Fill these in when you create the partner.
Always record the partner's PO
Every order needs the Partner PO number and Partner PO date. This keeps your order tied to the partner's own document.
Correct invoices with notes, not new invoices
Invoices are created for you when goods ship. To credit or charge a partner afterwards, raise a credit or debit note under B2B Sales → Notes.
Steps
Step 1: Open the B2B dashboard
Click B2B Sales in the sidebar. B2B Sales & AR shows the number of Open orders, AR outstanding (overdue), the AR ageing buckets (Current, 1–30, 31–60, 61–90 and 90+ days) and Partners at or near credit limit (80% or more of the limit used). Click a card to jump to the related page.
Step 2: Add a B2B partner
Go to B2B Sales → Partners and click + New partner. Choose Existing customer and pick the Customer, or choose New customer and enter the Partner code, Partner name and State (all required) plus optional GSTIN, address and contact details. Then set the Partner kind (Channel partner or Franchise), Channel type, B2B discount %, Fulfilling warehouse, Credit limit, Payment terms (days) and Overdue block (days), and click Create partner.
Leave Raise B2B tax invoices to this partner ticked unless the partner is a franchise settled by revenue share. It is needed to ship to them by transfer.
Step 3: Review a partner's terms, locations and ledger
Click a partner's code to open it. The tabs are:
- Commercial: agreement type, discount, credit limit, overdue block days, Credit hold and Bills B2B. Click Save commercial terms after changes.
- Locations: delivery points. Use + New location, Make default and Deactivate.
- Ledger: the partner's statement of account with a running balance.
- Notes: credit and debit notes for this partner.
Step 4: Create a sales order
Go to B2B Sales → Orders and click + New order. Choose the Partner and, if saved, a Ship-to location. Enter the Partner PO number and Partner PO date, and optionally a Delivery date and Notes. Search for SKUs, add a line for each with its Qty, and enter a Manual unit price only if you need to override the price. Click Create order. The order starts as Open.
Step 5: Confirm the order
Open the order and click Confirm. Before confirming, the system checks the partner's credit. If the order would exceed the credit limit, the partner has invoices overdue beyond the allowed days, or the partner is on credit hold, a red banner explains why and Confirm is blocked. If your role is allowed to override, click Override, enter a reason of at least 10 characters and click Confirm with override.
Step 6: Fulfil the order
On a Confirmed order, click Create fulfillment. This creates a transfer from the partner's fulfilling warehouse with the order's lines and opens it. Ship it from there. B2B Sales → Shipments takes you to the same transfers list. When the transfer to the partner is shipped, its tax invoice is raised automatically.
Step 7: Check invoices
Go to B2B Sales → Invoices to see the GST tax invoice register. Filter by status (Open, Partial, Paid, Overdue, Disputed). Each row shows the taxable, tax, total and outstanding amounts, the IRN and EWB status, and a Print link. Open an invoice to see the GST split and lines, print it with Print / PDF, or click Generate e-way bill.
Step 8: Raise and apply credit or debit notes
Go to B2B Sales → Notes and click + New note. Choose the Issuer (you or the partner) and Note type (credit or debit). The page shows whether the note increases or decreases what the partner owes you. Choose the Partner and Reason, add lines, and click Create note (draft). Open the note and click Issue note when it is final.
Then go to B2B Sales → Reconciliation, select the note under Unapplied notes, enter amounts against the partner's open invoices and click Apply allocations.
Step 9: Export to Tally
If your accounts are kept in Tally, go to B2B Sales → Exports. Choose Period from and Period to, tick Tax invoices and/or Credit / debit notes, and click Download Tally CSV.
Terms
- Indicative value
The order value worked out when the order is created. The final price is worked out again when the invoice is raised.
- Credit hold
A partner setting that blocks all new documents for that partner, whatever their balance.
- Overdue block days
New orders are blocked once one of the partner's invoices is overdue by more than this many days. 0 blocks any overdue invoice.
- Unapplied amount
The part of an issued note that has not yet been allocated against an invoice.
Key points
There is no button to create an invoice by hand. An invoice is raised when a transfer to the partner is shipped.
A partner-issued debit note decreases what the partner owes you. Check the effect shown on the note before you create it.
Partner delivery problems reported after shipping appear under Reported delivery discrepancies on the Reconciliation page, with a Raise credit note link.
Notes
This section appears only when B2B Sales is enabled for your organization.
The PO file field on a new order does not upload the file yet. Keep the partner's PO document elsewhere.
Tally exports only include documents marked ready for export. If your organization posts B2B documents to its own ledger, the download will contain no rows.
Warnings
Clicking Cancel order cancels the order straight away, without asking you to confirm. Orders that are fully dispatched or invoiced cannot be cancelled.
Once you download a Tally CSV, the documents in it are marked as exported and are not included in later exports.
FAQs
Why can't I confirm an order?
A credit check is blocking it: the order would exceed the partner's credit limit, the partner has invoices overdue beyond the allowed days, or the partner is on credit hold. The red banner on the order shows which. Clear the dues, change the partner's terms, or ask someone whose role is allowed to override.
I shipped goods to a partner but I can't see the invoice.
An invoice is only raised when the transfer to the partner reaches Shipped. Check the transfer's status first.
Create fulfillment says the partner has no fulfilling warehouse.
Set a Fulfilling warehouse for the partner, then try again. The transfer is created from that warehouse.
How do I give a partner a credit for returned or damaged goods?
Raise a credit note under B2B Sales → Notes with you as the issuer, issue it, then apply it to the partner's open invoices on the Reconciliation page.