Does sales order send the items to the In-transit warehouse after submitting Delivery Note?

Hi! I am new to erpNext… After submitting the Delivery Note, GL entries are created for COGS (Db) and Stock on Hand (Cr) and the items are deducted from the source warehouse. After submitting the Sales Invoice, GL entries are also created for AR (Db), Sales (Cr) and Tax (Cr). My question is, after submitting the Delivery Note, is there a way to put the items into the In-transit warehouse then deduct it from there after submitting the Sales Invoice?

My concern is that while the items are being delivered to the customer, the inventory of the items being delivered is gone in the system without the corresponding Sales Invoice which to my own opinion, creates an imbalance if someone happens to take a snapshot of the inventory by that time.

Thanks in advance!

Isn’t it pretty much the case, since accounting began, that once "items are … delivered to the customer, the inventory of the items being delivered is gone … " from any company.

Sure but the complementing GL entries (AR and Sales) is not to be done until the Sales Invoice is created and subsequently submitted. The items while being delivered is not yet gone from the company because it is not yet received by the customer, it is merely “floating” (should be moved to In-transit warehouse). The company’s inventory count/value should be same (source warehouse + In-transit warehouse) until Sales Invoice is submitted. Thanks for the reply!

It depends on your definition of delivery. Do you have your own delivery staff or are you sending by the national postal service?

If you have your own delivery staff then don’t first use a Delivery Note.

Create a Warehouse for each trucker, do a Material Transfer Stock Entry from your goods out area to the trucker’s warehouse. Then the trucker uses a tablet or something to generate the Delivery Note to the customer, specifying his own personally named warehouse as the source of the delivered goods.

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In ERPNext, a Delivery Note is issued when inventory is handed over to a customer. The document is meant to represent exactly the moment when the items become gone from the company.

If you’re trying to document a different kind of event, like Martin says, you shouldn’t use the Delivery Note.

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Thanks to both of you! I got now how it is designed in erpnext.