AN INTERNSHIP REPORT ON

INSPIRED ENGINEERING PRODUCTS

By
MONIKA .G
(U03LZ22C0108)
Under the guidance of
Ms.SABEENA L
In partial fulfilment of the curriculum requirement for
BACHELOR OF COMMERCE
2022-2025

St Claret College
Affliated to Bengaluru University
Jalahalli,Bangalore
INTERNSHIP COMPLETION CERTIFICATE
 DECLARATION

I, MONIKA .G hereby declare that this internship report on “Inspired

engineering products” is an original and authentic work submitted in
partial fulfilment of the curriculum requirement for the Degree of
Bachelor of commerce, under Bangalore University for the
academic year 2022-2025.
This internship report has not form the bases for the award of any
other degree / diploma from any other University/Institutions

Date: / / 2025 MONIKA .G

Place: Bangalore (U03LZ22C0108)
 ACKNOWLEDGEMENT FROM THE STUDENT

It is indeed my pleasure to mention and thank the persons who have

given me steady guidance, advice,and encouragement in my
Internship work, having spent their valuable time to contribute the
required information to me and gave me support while preparing this
report .
I gratefully acknowledge my sincere gratitude to Mr.Vasu V, HOD of
the Department of Commerce for coordinating my work and
Ms.Sabeena.L for her kind guidance and helpful suggestions in every
stage of the preparation of this report.
I owe my sincere thanks to Vijay Kumar Mamata (CEO) for
providing me an opportunity to undertake my project work in their
esteemed organisation and to obtain valuable insights about the work
of the firm.

Thank You.
 EXECUTIVE SUMMARY

Bcom is an under graduate program under NEP scheme.

Through this course connect the classroom learning real
world, an individual can learn practical, professional and the
technical skills associated with many of the procedures of
financial analysis and accounting standards.

Under Bangalore university Bcom program we are having a

subject internship in which we have to work hands on training
under a manufacturing firm {INSPIRED TECHNOLOGY}
for a period of 4-8 weeks.

As a part of academic, I did my internship at Inspired

engineering technology 30days (90 hours). In this period, I
have learn to access seed software ,purchase order , tax
invoice ,vouchers ,invoice which I learnt from there.

This project is about my internship and detail information

about the task which had been undertaken by me during this
internship period.
 CHAPTER – 1
INTRODUCTION
Inspired engineering products
#92,93 12th cross near Nandhini Garden,
C/O Gupta Ratana Building, Doddanna
Industrial estate, Srigandha Kavalu,
Peenya 2nd stage, Vishwaneedam post,
Bengaluru = 560091
Karnataka, India
Company CEO = Vijay Kumar Mamata
What are the operations done in the manufacturing company?

1. Product Design & Development

Every manufacturing operation starts with designing and developing the

product. This stage is crucial because it aligns what the company can produce
with what the custome needs. It involves conducting market research to identify
trends and customer demands ,followed by creating concepts and prototypes.
These early samples allow teams to test ideas before moving into mass
production. Engineers then prepare detailed drawings and documentation that
serve as blueprints for manufacturing. Before the final design is approved, the
product is tested thoroughly to ensure it meets performance and quality
standards.
2. Procurement & Supply Chain

Procurement and supply chain management ensure that the right materials are
available at the right time. It starts with identifying reliable suppliers who can
provide quality raw materials or components. Once chosen, the company places
purchase orders and monitors deliveries to keep production on schedule.
Inventory is carefully managed to strike a balance—avoiding both shortages and
excessive stock. Advanced practices like just-in-time inventory and efficient
warehousing help reduce waste and lower storage costs, keeping operations
smooth and cost-effective.
3. Production & Manufacturing

This is the core of any manufacturing company. It involves turning raw

materials into finished products through well-planned production schedules and
machinery setups. Whether it’s assembling electronics or shaping metal parts,
this function depends heavily on precision and process control. Throughout
production, the company monitors progress closely to ensure everything meets
standards. Many companies use lean manufacturing techniques to cut waste and
improve productivity. Tools like six sigma and Kaizen are also common for
ongoing improvements.
4. Quality Assurance & Control
 Quality control makes sure that only high-standard products reach the
customer. It starts with checking incoming materials, continues with in-
process inspections, and ends with a final inspection of the finished
goods. This helps catch and fix problems early. Many companies follow
ISO or industry-specific standards to ensure consistency. If an issue is
found, reports are filed and corrective actions are taken to avoid future
problems. This process ensures customer satisfaction and protects the
brand’s reputation.

5. Maintenance & Equipment Management

Involves two types: preventive (scheduled checks and servicing) and

corrective (quick fixes for unexpected failures). Regular calibration
ensures that equipment continues to work accurately. By tracking
machine downtime To avoid costly breakdowns and delays, companies
must keep their machines in top shape. Maintenance and performance,
companies can spot patterns and prevent repeat issues, helping to keep
production lines running efficiently.

6. Packaging & Logistics

Once products are finished and pass quality checks, they need to be
packaged securely for storage or shipping. Packaging protects items from
damage, with special attention given to fragile or corrosion-prone goods.
Products are then stored in warehouses until they're ready for dispatch.
Logistics teams handle everything from scheduling shipments to
selecting transport partners and tracking deliveries. A well-run logistics
system enscures products reach customers on time, whether locally or
internationally.

.
7. Sales & Customer Service

Sales and customer service connect the business with its customers. The
sales team handles orders, quotes, and contract negotiations, while also
working to build long-term relationships. They focus on meeting
customer needs and driving revenue. On the other hand, customer service
deals with support, inquiries, and complaints. In some cases, they also
manage installation, warranties, and maintenance. Together, these teams
play a vital role in maintaining customer satisfaction and loyalty.

8. Administrative & Financial Operations

Behind the scenes, administrative and financial teams keep the company
running smoothly. HR handles hiring, training, payroll, and health and
safety—ensuring a skilled and safe workforce. The finance team oversees
budgeting, cost management, tax compliance, and forecasting. They track
the company’s financial health and help guide decisions. In today’s digital
world, these teams also manage data systems and performance
dashboards, providing real-time insights to support leadership and
strategy.
4th and 5th axis machine Modular Kitchens

4-axis and 5-axis CNC machining have gained popularity as advanced

alternatives to traditional 3-axis machining, offering greater flexibility and
precision. In 4-axis CNC machining, the spindle moves along the standard three
axes—up and down, side to side, and back and forth—while the workpiece
remains fixed on the machine table. What sets it apart is the additional A-axis,
which allows the workpiece to rotate along the X-axis. This added movement is
especially useful for operations such as drilling holes or creating cutouts on
multiple sides of a component, significantly enhancing both speed and accuracy.
Taking it a step further, 5-axis CNC machining builds on the same core
principle but introduces even greater versatility. In this setup, the spindle and
cutting tool move along three linear axes, while the additional two rotational
axes—A (rotation around the X-axis), B (around the Y-axis), or C (around the
Z-axis)—offer increased freedom of movement.
Depending on the machine’s configuration, any two of these rotational axes can
be utilized. This expanded range of motion allows for more complex machining
tasks, enabling the machine to perform milling, turning, and othoperations.all
in one setup. As a result, 5-axis CNC machining is ideal for creating operation
ACE SUPER JOBBER

The Super Jobber machine is a perfect blend of cost-effectiveness and precision,

making it an ideal choice for job shops and ancillary units. This horizontal 2-
axis turning center is designed to deliver reliable performance and is available
in A2-6 spindle configurations. It offers a maximum turning diameter of up to
350 mm and a turning length of up to 400 mm, catering to a wide range of
turning applications. Depending on specific requirements, the machine can be
configured with either Linear Motion (LM) guideways or Box and Hardened
guideways. With a power capacity of 7.5 kW (continuous) and 11 kW (for 15
minutes), the Super Jobber provides the versatility and efficiency needed for
high-quality machining in various industrial environments.
 MVC 450-4th Axis (ROTARY TABLE)

The MCV-450 is a highly popular, high-performance vertical machining

center known for its versatility across a wide range of applications.
Engineered with a high-rigidity and highspeed spindle, it delivers an
exceptional combination of speed, power, flexibility, and accuracy—setting a
new benchmark in production efficiency. Its wide door opening ensures easy
loading and unloading of fixtures and components, enhancing operational
convenience. Built with high-precision components, roller guideways, and
ball screws, the MCV-450 boasts a rigid structure and ergonomic design that
contribute to superior accuracy and productivity. Additionally, it can be
equipped with linear or rotary pallet changers, 4th and 5th axis rotary tables,
production systems, and automation solutions, making it an ideal choice for
boosting overall manufacturing performance.

to delivery — offering both standard modules and personalized

furniture solutions.
Vertical Machining Center (MVC)

A Vertical Machining Center (VMC) is a specific type of CNC (Computer

Numerical Control) machine, distinguished by its vertically oriented spindle.
While CNC refers broadly to any machine tool that is operated through pre-
programmed computer software—covering machines like lathes, routers, and
mills—a VMC is dedicated to precise milling, drilling, and cutting tasks.
Known for their high accuracy and reliability, VMCs are commonly used in
industries that require the creation of detailed and intricate components. In
essence, all VMCs are CNC machines, but not all CNC machines are VMCs.
The use of CNC technology allows these machines to perform complex tasks
with consistency and minimal human intervention, making them an essential
part of modern manufacturing processes.
 CHAPTER – 2
WORK EXPERIENCE

DAY-01

During the initial days of my training, I was introduced to the

company gained an understanding of its core operations and
the services it provides to its customers. The company
specializes in manufacturing and offering high-quality
products and solutions tailored to meet diverse customer
needs.
Learning Experience and ERP System
Exposure
As part of my orientation, I was also introduced to the internal
processes related to order handling and financial entry
recording. I learned how the company manages and processes
customer orders, tracks inventory, and maintains financial
records. A significant part of this learning involved working
with the company’s ERP (Enterprise Resource Planning)
system.
Company Orientation and Work Culture
As part of the onboarding process, I was given a brief
orientation about the company, its core values, and the work
culture. The company places a strong emphasis on
professionalism, teamwork, and integrity, fostering an
environment that encourages collaboration and continuous
learning. Their ethical approach to business operations and
commitment to employee development were clearly reflected
in their daily practices.

DAY-02

Understanding What an Invoice

On the second day of my internship, I was introduced to one of the

most fundamental documents in any business—the invoice. I learned
that an invoice is typically prepared by the seller after goods or
services have been delivered to the customer. It includes key
information like the seller’s and buyer’s names and addresses, invoice
number, date, details of goods or services, quantity, rate, tax amounts,
and the final value payable. Most organizations generate these using
ERP or accounting software, ensuring accuracy and consistency
across transactions.

Learning:
What stood out to me immediately was that an invoice is far more
than just a receipt or a simple payment request it a formal, legal
record of a financial transaction. It plays a critical role in establishing
income for the seller and an obligation for the buyer. Through
discussions with the accounts team and by reviewing sample invoices,
I realized that this document is the starting point for everything from
revenue recognition to tax filing.
I also understood how vital it is to follow a standard invoice format,
particularly under the GST regime. Elements like the GSTIN,
HSN/SAC codes, invoice number, and tax splits (CGST, SGST,
IGST) are not optional—they are mandatory for compliance and must
be correct. This helps ensure that the invoice is accepted by both the
buyer and tax authorities without delays or disputes.
Another key insight was the importance of sequential numbering.
Each invoice must follow a proper sequence without duplication or
gaps, as this forms part of the company’s audit trail. ERP systems are
designed to handle this automatically, which not only saves time but
also reduces the risk of human error.

Observation:
During my hands-on observation, I was shown a variety of invoice
formats used by the company. While the core structure remained the
same—showing essential fields like invoice date, customer details,
itemized billing, tax rates, and total amount—I noticed some subtle
differences depending on the department. The finance team used a
highly detailed format for tax reporting, whereas the sales team
preferred a cleaner layout for customer presentation.
The ERP software, particularly Tally and SAP, played a major role in
how invoices were generated. I watched how, once a sale was
recorded in the system, an invoice could be created instantly with
most fields auto-filled. This automation ensured that important details,
like tax rates and customer GSTINs, were accurately captured.
However, I also observed that users still needed to review the
information before finalizing, since any error in the master data
(like an incorrect product code or outdated GSTIN) could lead
to problems downstream.
One interesting thing I noticed was how branding elements—like
company logos, signature lines, or background colors—were added to
certain invoices. While this made the documents look polished, it
occasionally created confusion for the internal teams who were used
to a standard template. This observation made me realize how visual
consistency also plays a role in operational efficiency, especially
when documents pass through multiple departments.

DAY-03

Types of Invoices

Learning:
Through discussions and hands-on document reviews, I learned that
invoices are not interchangeable; each one is designed for a specific
situation. The tax invoice is the standard, issued when a sale is
completed, and it includes all the necessary details for GST
compliance. This is the formal document businesses use for
accounting purposes and claiming Input Tax Credit (ITC).
The proforma invoice was a new concept for me. It's essentially a
quote or estimate, provided before the sale is confirmed. It doesn't
have the legal weight of a tax invoice but is crucial for initiating
procurement or securing approvals, especially in B2B transactions.
Then, I encountered the commercial invoice, which is used
predominantly in export transactions. This document contains
additional information needed for customs clearance—like
shipping details, port names, and export-related data—not found in a
typical domestic tax invoice.
I also learned about credit notes and debit notes, which are issued to
make adjustments to previous invoices. A credit note is used when an
item is returned or if there was overbilling. Conversely, a debit note is
issued when there's a need to recover undercharges or additional fees.
Finally, I explored revised invoices, which are issued when a mistake
is discovered in an earlier invoice—such as after a company obtains
GST registration or corrects clerical errors. These revised invoices
must reference the original document and follow specific protocols to
maintain accuracy.
By the end of the day, I appreciated how each type of invoice fits into
the wider workflow of the business, helping ensure financial accuracy
and legal compliance. Using the correct type of invoice in the right
context prevents unnecessary complications in accounting, tax
reporting, and vendor relations.

Observation:
Throughout the day, I observed how each department uses different
types of invoices at various stages of the transaction cycle. For
example, the sales team often creates proforma invoices to initiate
discussions with clients. These invoices look similar to the final
documents but are clearly labeled as “Proforma” to avoid any
confusion about their non-binding nature.
Once a sale is confirmed, the finance department steps in to generate
the tax invoice using the ERP system. This system ensures that all the
legal fields, like GST rates, HSN codes, and payment terms, are filled
in. I noticed that the ERP system would not allow a tax invoice to be
generated unless a valid GSTIN was provided for the buyer, which
greatly reduces the risk of mistakes.
During a training session with the accounts team, I was able to see
how credit and debit notes are issued. For instance, I observed one
case where a credit note was created because a customer returned a
damaged product. The credit note referenced the original invoice and
automatically adjusted the buyer’s ledger in the system. This process
highlighted how crucial it is to keep transaction records linked and
accessible.
Additionally, I was shown a commercial invoice for an export order,
which included much more than just the product and tax details. It
also provided shipping terms like FOB (Free On Board), port
information, and harmonized system codes, all of which are essential
for international trade. It became clear to me how much more
complex the invoicing process gets when goods cross borders, and
how customs regulations shape the documentation.
Overall, I saw firsthand how important it is to use the correct invoice
type at the right time. Whether it’s for a simple sale, an export
transaction, or a correction to a prior invoice, using the wrong type
can result in delays, errors, and complications that can affect
everything from tax filings to customer satisfaction.
DAY-04

Purpose of Invoices

Learning:
On this day, I gained a deeper insight into the true significance of
invoices in the business environment. What initially seemed like a
simple billing document turned out to be a vital piece of the financial
and legal framework of an organization. I learned that every invoice
issued acts as both a payment request and a tax record, carrying
weight in the eyes of both the business and tax authorities,
particularly under GST laws.
Invoices play a critical role in reconciling purchases and sales,
aligning them with related documents like purchase orders and
delivery notes to ensure accuracy. They're also foundational during
GST filings and audits, acting as core documentation to support tax
claims and regulatory compliance. Beyond compliance, I understood
how businesses depend on invoices to monitor receivables, enforce
credit periods, and keep their cash flow steady.
This experience taught me that invoices are not just documents—they
are strategic tools that influence everything from operational
efficiency to legal accountability and financial health.

Observation:
Spending time with the finance and accounts team gave me a practical
view of how carefully invoices are managed behind the scenes. I
observed that no invoice is cleared for payment without being
matched against the corresponding Purchase Order (PO) and Goods
Receipt Note (GRN)—a step known as three-way matching. This
ensures that businesses only pay for what they actually ordered and
received.
I also noticed the use of a digital invoicing and archiving system,
which made it easy for the team to retrieve past invoices during audits
or internal reviews. This system not only improved efficiency but also
ensured that all documents were secure and easily accessible when
needed.
In one specific instance, a delayed invoice caused a bottleneck in
processing, impacting both the vendor’s payment schedule and the
company’s GST return timeline. In another case, a quantity mismatch
on an invoice led to a quick vendor query and correction—showing
how small errors can disrupt the workflow if not caught early.
These observations highlighted just how crucial accuracy and timing
are in the invoicing process, and how much coordination is required
between departments to keep things running smoothly

DAY-05

Invoice Generation Process

Learning:
Today, I explored the actual step-by-step process of how invoices are
generated in a business setting. I learned that invoice creation is not
just about filling in amounts and pressing "print." It’s a structured
workflow that starts with validated source documents—usually a
Purchase Order (PO) and a Goods Receipt Note (GRN)—which are
reviewed before the invoice is prepared.
The process typically begins once goods or services have been
delivered. The finance or billing team checks the PO to confirm what
was ordered, and the GRN to verify what was received. Only after
this confirmation is an invoice generated using the company’s
Enterprise Resource Planning (ERP) system. The ERP system pulls in
essential information like GST rates, HSN codes, item descriptions,
pricing, and buyer details, ensuring accuracy and compliance.
I also learned how the system is designed with built-in validation
rules. For instance, it won’t allow the creation of an invoice unless all
mandatory fields—like GSTIN, invoice date, and tax amounts—are
properly filled in. This minimizes human error and ensures
consistency with statutory guidelines.
What struck me most was how important timing is in this process.
Delayed invoice generation doesn’t just postpone payment it also
affects GST reporting, customer satisfaction, and overall cash flow
planning.

Observation:
During my time with the finance department, I observed the entire
invoice generation process firsthand. A billing executive walked me
through the steps on the ERP interface. I saw how the system
automatically fetched data from the PO and GRN and populated the
invoice fields, leaving little room for manual error. However, the team
still double-checked everything before finalizing the document, which
showed me the importance of human oversight even in
automated systems.
In one case, I observed an invoice being held back because the
buyer’s GSTIN was missing. The system flagged the issue, preventing
submission until the correct data was entered. This kind of check
helps maintain compliance and avoids rework.
I also noticed that for high-value transactions, the invoice required an
additional layer of internal approval before being shared with the
customer. This reinforced how businesses build control mechanisms
into the invoicing process to avoid discrepancies and ensure accuracy.

DAY-06

Components of a Tax Invoice

Learning:
Today, I concentrated on breaking down the structure and contents of
a tax invoice, especially as defined under the Goods and Services Tax
(GST) framework. While I had seen invoices before, I hadn’t fully
appreciated how many mandatory elements they must include to be
legally valid.
I learned that a proper tax invoice must contain key details such as the
invoice number, date of issue, supplier’s name, address, and GSTIN,
as well as the recipient’s details, including their GSTIN if applicable.
The body of the invoice must clearly mention the description of
goods or services, quantity, unit value, rate and amount of tax (CGST,
SGST, IGST), and the total value.
I also discovered the importance of HSN (Harmonized System of
Nomenclature) codes for goods and SAC (Service Accounting Codes)
for services. These codes are essential for tax classification and must
be mentioned based on the taxpayer’s turnover slab.
Another critical component is the declaration and signature (physical
or digital) of the authorized person. I hadn’t realized before that even
the format and sequence of invoice numbers must follow a consistent
system for the entire financial year to maintain audit trails.
Understanding these components helped me see how a tax invoice is
not just a billing tool but also a legal document designed to ensure
uniformity, transparency, and compliance under GST law.

Observation:
I observed the finance team preparing tax invoices for both goods and
services, using their ERP system. Each invoice was generated only
after confirming the accuracy of the source data. The system
prompted users to fill in all mandatory fields—missing information
like HSN codes or GSTINs would halt the process entirely.
In one case, a junior executive tried to input a product description
without assigning an HSN code, and the ERP flagged it instantly. A
senior team member explained how such omissions could lead to
issues in GST filings or even invite notices during audits.
I also noticed that for B2B transactions, invoices were carefully
reviewed to ensure the buyer’s GSTIN was correctly mentioned. This
is vital because any mismatch can affect the buyer’s ability to claim
Input Tax Credit (ITC).
Some invoices even had a QR code included—especially those
generated for e-invoicing under GST rules for companies above a
certain turnover. This not only added authenticity but also made the
invoice machine-readable by government systems.
Seeing how each element of a tax invoice serves a specific
compliance or operational purpose helped me understand why even
small errors can have large financial and legal consequences.

DAY-07

GST and Its Role in Invoicing

Learning:
Today, I focused on understanding the direct relationship between
Goods and Services Tax (GST) and invoicing. It became clear to me
that GST is not just a tax mechanism—it actively shapes how invoices
are structured, issued, and processed.
I learned that under GST, issuing a compliant invoice is a legal
requirement. It’s the basis for calculating tax liability and for the
buyer to claim Input Tax Credit (ITC). Without a proper tax invoice,
businesses cannot legally collect GST from customers, nor can
customers claim credit for the tax they’ve paid. This makes invoices
central to maintaining transparency and accountability in the GST
system.
I also gained insight into how GST is split into CGST, SGST, and
IGST depending on whether a transaction is intra-state or inter-state.
The invoice must clearly state which of these components apply,
along with their respective rates and values. Any omission or
misclassification could result in penalties or loss of ITC eligibility.
Another key takeaway was that e-invoicing is mandatory for
businesses above a certain turnover threshold. This involves
uploading invoice data to the Invoice Registration Portal (IRP) and
getting it authenticated with an Invoice Reference Number (IRN) and
QR code. These steps ensure invoice traceability and real-time
reporting to the GST system.
This entire process showed me how GST compliance is deeply
integrated into the very structure and lifecycle of an invoice from
creation to reporting.

Observation:
While shadowing the tax and finance team, I watched how invoices
are generated with strict adherence to GST norms. The ERP system
automatically split the GST components—CGST and SGST for local
sales, and IGST for inter-state ones—based on the shipping address.
I also observed the team verifying whether the buyer’s GSTIN
matched the state code to ensure the correct tax application. One
invoice had to be revised because the buyer's state code didn’t align
with the GSTIN prefix, which would have caused an ITC rejection for
the client.
Additionally, I got to see how e-invoicing works in practice. For a
high-value transaction, the invoice was first prepared in the ERP and
then uploaded to the IRP portal. Once authenticated, the invoice came
back with a unique IRN and QR code, which was printed on the final
version.
Another situation involved a vendor who sent an invoice without a
valid GSTIN or HSN code. The accounts team immediately flagged it
and requested a revised invoice, since such documents are not
acceptable for ITC claims or GST filings.
Through these real-life instances, I clearly saw how GST compliance
is tightly woven into every aspect of invoicing. Accuracy, timeliness,
and digital integration are non-negotiable when it comes to GST-
linked documentation.

DAY-08

Purchase Order and Invoice Matching

Learning:
Today’s focus was on understanding the critical process of Purchase
Order (PO) and Invoice matching, which plays a key role in
controlling costs, preventing errors, and ensuring accurate payments. I
learned that this process involves cross-checking invoices against
purchase orders and sometimes against delivery challans or Goods
Receipt Notes (GRNs), especially in larger organizations where
internal controls are strict.
The primary objective of PO-Invoice matching is to confirm that the
goods or services billed actually align with what was ordered—both
in terms of quantity and price. This comparison helps identify
discrepancies like overbilling, incorrect tax amounts, or unapproved
charges.

I also learned about the different types of matching practices used in

businesses. The two-way match involves comparing the PO with the
invoice, while the three-way match includes checking the GRN to
confirm that the goods were physically received. Some companies
even use a four-way match by involving inspection reports or quality
checks.
This process ensures that vendors are paid only for what was
authorized and delivered, while also helping avoid financial leakages,
duplicate payments, and compliance risks. It became clear that PO
matching is not just a routine check—it’s a frontline defense for
maintaining procurement integrity and financial accuracy.

Observation:
While observing the accounts payable team, I saw the PO-Invoice
matching process in action. For each incoming invoice, the system
pulled up the corresponding PO automatically from the ERP. The
team then checked whether the billed quantity and rate matched the
PO. If everything aligned, the invoice was approved for payment. If
there was even a slight mismatch say, an extra item or a different rate
it was flagged and returned to the vendor for correction.
In one particular case, a vendor had billed for a higher quantity than
what was received. The system identified this through a three-way
match involving the GRN, and the payment was halted until the issue
was resolved.
I also noticed how time-consuming the matching process can become
when done manually, especially for large volumes of transactions.
However, the use of an integrated ERP system helped automate

DAY-09

Delivery Challans

Learning:
Today’s focus was on understanding delivery challans—a key
document in the logistics and inventory management process. I
learned that a delivery challan is issued when goods are transported
but not sold immediately. Unlike an invoice, it doesn’t imply a
completed sale; instead, it serves as proof of dispatch and delivery.
Delivery challans are commonly used in scenarios such as sending
goods for job work, transferring stock between branches, or delivering
goods for approval. They include details like the description of goods,
quantity, and vehicle information, but do not contain pricing or tax
information like an invoice would. I was also introduced to the GST
rules that allow businesses to transport goods without a tax invoice in
specific cases, provided a properly filled delivery challan is issued.
What stood out to me was how crucial it is for businesses to maintain
a clear record of goods movement, even if a sale hasn’t occurred.
Delivery challans help track inventory in transit and prevent any
disputes related to delivery, shortages, or damage. They're also
essential when creating E-Way bills, as the challan serves as the base
document for transport under GST regulations.
Observation:
During my time with the dispatch department, I observed how
delivery challans are generated through the ERP system before goods
leave the warehouse. The team inputs product codes, quantities, and
vehicle details, and prints out multiple copies—one for the
transporter, one for the receiving party, and one for internal records.
I noticed that in cases of inter-branch stock transfers, the delivery
challan served as the only document accompanying the goods, while
the actual billing was handled later. The receiving branch would
verify the challan against the goods received before acknowledging it
in the system. This helps prevent discrepancies in stock movement
and ensures both locations are aligned in their inventory records.
In one instance, I saw a delivery challan being used to send goods for
repair. Since no sale was involved, the document ensured the goods
were formally tracked and could be accounted for during return. The
importance of maintaining proper documentation for such non-sale
movements became very clear.

DAY-10

Goods Receipt Note (GRN)

Learning:
Today, I focused on the importance of a Goods Receipt Note (GRN)
in the supply chain and inventory management process. I learned that
the GRN is a document issued by the receiving department after
goods are delivered, and it plays a critical role in ensuring that what
was ordered is actually received in the correct quantity and condition.

The primary purpose of a GRN is to act as a receipt for the goods and
as a record for inventory control. It serves as proof that goods were
physically received at the destination, whether it’s a warehouse, store,
or any other receiving location. The GRN includes important details
like the date of receipt, quantity of goods, item description, and the
purchase order reference number, but it does not include pricing
information this will come later with the invoice.
I learned that the GRN is a key document for inventory management.
It helps track stock levels and is used to reconcile with both the
purchase order (PO) and the delivery challan. The document also
serves as the foundation for creating an invoice later on, ensuring that
any discrepancies in quantity or quality are addressed before payment
is processed.
Additionally, the GRN is closely tied to GST compliance. When
goods are received, businesses are required to issue a GRN to ensure
the correct E-Way bill is generated under GST regulations, which then
serves as documentation for the movement of goods.

Observation:
While shadowing the warehouse and receiving teams, I observed the
process of creating a GRN once goods arrived. The team would first
match the incoming shipment against the corresponding PO to ensure
the right products were delivered in the correct quantity. They would
then check the items for any visible damage or discrepancies, and the
GRN was created if everything was in order.
One thing that stood out was the close relationship between the GRN
and the purchase order. The GRN was directly linked to the PO in the
ERP system, allowing the team to quickly verify the details. If there
was a mismatch between the PO and the GRN—such as a discrepancy
in quantity or an incorrect item—the system flagged it, and the
receiving team had to notify the supplier to correct the issue before
proceeding.
I also witnessed how the GRN impacts inventory tracking. When a
GRN is generated, the system automatically updates the stock levels,
ensuring real-time accuracy. This is crucial for businesses to keep
track of their stock on hand, prevent inventory shortages, and plan for
future procurement needs.
In one instance, I observed a case where a shipment had arrived with a
discrepancy in quantity. The receiving team immediately recorded the
difference on the GRN and flagged it for follow-up with the vendor.
This ensured that the vendor could address the issue before invoicing,
preventing potential overpayment or inventory imbalance.

DAY-11

Invoice to Payment Cycle

Learning:
Today, I focused on understanding the Invoice to Payment Cycle, a
crucial part of the accounts payable process. I learned that this cycle
begins once an invoice is received from a supplier and ends when the
payment is made. The key stages of this cycle involve invoice
verification, approval, recording, and finally, payment processing.
The first step in the cycle is the verification of the invoice. This
involves cross-checking the details against the purchase order (PO)
and goods receipt note (GRN). I learned that this step ensures that the
goods or services invoiced match what was actually ordered and
delivered. Any discrepancies in quantity, price, or terms must be
resolved before proceeding further.
Once the invoice is verified, it typically goes through an approval
process, where authorized personnel check for correctness and
approve the payment. In larger organizations, this step might involve
multiple departments to ensure everything is in order. Once approved,
the invoice is entered into the accounting system and scheduled for
payment according to the agreed payment terms (e.g., net 30, net 60).
A key point I learned is that the invoice to payment cycle is integral to
maintaining good supplier relationships and ensuring the business's
cash flow remains healthy. Delays or errors in processing invoices can
strain vendor relationships and negatively impact the company’s
creditworthiness.

Observation:
I had the opportunity to shadow the accounts payable team, and I was
able to observe firsthand how they manage the invoice to payment
cycle. The process starts with the receipt of the supplier’s invoice,
which is then verified against the PO and GRN in the company’s ERP
system. I saw how the system automatically flagged any discrepancies
for manual review, ensuring that no payments were made without
proper verification.
One of the most interesting parts of the observation was seeing the
approval workflow. The invoice would go through multiple levels of
approval, depending on the amount and type of goods or services. For
instance, invoices over a certain threshold required approval from
both the finance manager and the department head, ensuring multiple
checks before the payment was authorized.

DAY-12

Purchase Order

Learning:
Today, I focused on understanding the importance of the Purchase
Order (PO) in business operations. A Purchase Order is an official
document issued by a buyer to a seller, detailing the goods or services
to be purchased, along with the agreed prices, quantities, and delivery
terms. I learned that the PO acts as a legal contract between the buyer
and the seller, setting the groundwork for all subsequent steps in the
procurement and invoicing process.
The main function of a PO is to formalize the purchase agreement and
provide clarity about the transaction. It helps eliminate any confusion
regarding what has been ordered and what the supplier is obligated to
deliver. I discovered that POs also play a crucial role in ensuring that
the business maintains control over its budget and spending. By
having a written record of the order details, businesses can better track
expenses and ensure they stay within financial limits.
I also learned that Purchase Orders are closely linked to inventory
management. When a PO is created, the procurement team can align it
with inventory levels to avoid over-purchasing or stockouts. This
connection is crucial for ensuring that businesses maintain the right
balance of supply.
Another important aspect I learned about POs is how they serve as a
reference for future transactions. For example, if any discrepancies
arise with the delivery or invoice, the PO can be used to resolve
disputes and ensure that both parties adhere to the agreed terms.

Observation:
During the day, I had the chance to observe the procurement team in
action as they created and processed POs. I saw that the process
begins when a department requests goods or services, after which the
procurement team sources suppliers and creates a PO in the ERP
system. I noticed how the system automatically pulls details such as
pricing, delivery terms, and the agreed-upon quantity from existing
supplier contracts, making the process faster and more accurate.
I also observed how the PO serves as a communication tool between
the buyer and the seller. Once the PO is issued, the supplier reviews it
and either confirms the order or raises any issues, such as pricing
discrepancies or stock unavailability. This back-and-forth ensures that
both parties are on the same page before proceeding with the delivery.
One interesting observation was how POs are used to monitor
procurement budgets. The procurement team tracks the status of each
PO and compares it against the department’s budget, ensuring that
spending does not exceed the allocated amount. This process helps the
company maintain financial discipline and avoid unnecessary
expenditure.
Additionally, I saw how POs are integrated with inventory
management systems. When goods are received, the PO is referenced
to ensure that the correct items have been delivered in the right
quantities. This helps prevent errors and ensures that inventory
records are accurate.
DAY-13

Delivery Challan

Learning:
Today, I focused on understanding the role of the Delivery Challan in
the procurement and sales process. I learned that a Delivery Challan is
a document issued by the seller when goods are dispatched to the
buyer. It serves as a proof of delivery, detailing the items being
delivered, their quantities, and other relevant details such as shipping
terms and addresses.
What stood out to me was that while a Delivery Challan doesn’t have
the same legal standing as an invoice, it is an essential document in
verifying that the goods have been shipped or received. It ensures that
the buyer and seller are aligned on what has been delivered, and it’s
typically signed by both parties to confirm receipt.
The Delivery Challan is also a crucial document for the inventory
management system. When the goods are received, the receiving
department uses the Delivery Challan to match the actual goods with
the items listed. This matching process helps prevent errors like
under-receipt or over-receipt of goods. It also helps to ensure that
goods are delivered in the correct condition and that there are no
discrepancies between the quantity ordered and the quantity delivered.
Additionally, I learned that a Delivery Challan is often used alongside
the Invoice. The Delivery Challan is issued when the goods are
shipped, while the invoice is typically created once the goods are
received. This separation helps streamline operations and provides a
clear distinction between the delivery and payment stages of the
transaction.

Observation:
As I observed the operations, I witnessed the Delivery Challan being
created at the point of dispatch. I noticed that the warehouse team
prepares the document by referencing the Purchase Order and Invoice
details. Once the goods are packed and ready for dispatch, the
Delivery Challan is generated, and the driver or courier is given a
copy to present upon delivery.
I also observed the receiving department handling the goods upon
arrival. They used the Delivery Challan to verify the items received.
Any discrepancies, such as missing or damaged goods, were
immediately flagged and reported. For example, in one instance, the
receiving department noticed that a delivery did not match the
quantity listed on the Delivery Challan. They immediately contacted
the supplier and recorded the discrepancy to prevent future issues.
The Delivery Challan was also used to track the delivery timeline. In
one case, a delayed shipment triggered a follow-up with the supplier
to determine the cause of the delay. This proactive monitoring helped
ensure that any delays were addressed promptly.
I was impressed by how the Delivery Challan facilitated smooth
coordination between the warehouse, logistics, and receiving teams. It
acted as a reference point to ensure that all parties were aligned and
that no goods were lost or mishandled during transit.
DAY-14

Goods Receipt Note (GRN)

Learning:
Today, my focus shifted to understanding the importance of the Goods
Receipt Note (GRN) in the overall supply chain and procurement
process. I learned that a GRN is a document used by the buyer to
formally acknowledge the receipt of goods from the supplier. It is
generated once the goods arrive at the receiving warehouse and are
inspected for quality, quantity, and condition.
What stood out to me about the GRN is that it serves as a critical
record for inventory management. By comparing the actual goods
received with the Purchase Order (PO) and Delivery Challan, the
GRN helps ensure that the right goods have been delivered in the
right quantities. This matching process ensures there are no
discrepancies or errors in the inventory records, which could lead to
financial inaccuracies or logistical issues.
I also learned that the GRN plays a vital role in quality control. When
the goods are received, they undergo a quality check, and any
damages or defects are noted on the GRN. This helps the business
quickly identify any issues with the delivery, initiate returns or
replacements, and maintain the integrity of its inventory.
Another important aspect I discovered is that the GRN supports
accounting and payment processes. It acts as evidence that the goods
have been received in good condition, which then allows the accounts
team to process the supplier’s invoice. Without a GRN, payments
could be delayed or disputed, as there would be no formal
acknowledgment of the delivery.
Finally, I realized that the GRN is a key component in the audit trail.
It provides a clear record of the goods received, the condition they
were in upon arrival, and any discrepancies, making it an important
reference for both internal audits and any future disputes with
suppliers.

Observation:
During my observation of the receiving process, I saw how the GRN
is created as soon as the goods are unloaded from the delivery truck.
The receiving department compared the items to the Purchase Order
and Delivery Challan to ensure everything matched in terms of
quantity and specifications. I noticed that any discrepancies, such as
missing or damaged items, were immediately recorded on the GRN
and communicated to the supplier for resolution.
The receiving team used a barcode scanning system to streamline the
process of recording received goods. This system automatically
updated the inventory records, making it easier to track stock levels
and identify any issues that might arise from incorrect deliveries.
I also witnessed how the GRN is used to trigger the next steps in the
payment process. Once the goods were inspected and verified, the
GRN was forwarded to the accounts department, who then matched it
with the supplier’s invoice. If everything was in order, the payment
was processed. In one case, there was a mismatch between the GRN
and the invoice, leading to a delay in payment until the discrepancy
was resolved with the supplier.
DAY-15

E-Way Bill

Learning:
On Day 15, my focus was on understanding the E-Way Bill, a critical
document in the logistics and transport process, particularly under the
Goods and Services Tax (GST) framework. I learned that the E-Way
Bill is an electronic document required for the movement of goods
worth more than a specified value (currently ₹50,000 in India). It
serves as a proof of the transport of goods and must be generated
before the goods are dispatched from the seller’s premises.
One of the most important aspects of the E-Way Bill is its role in
ensuring compliance with GST regulations. It allows tax authorities to
track the movement of goods and verify that they match the declared
values and tax liabilities. This ensures transparency in the supply
chain and helps reduce tax evasion.
I also learned that the E-Way Bill system is completely digital, and
businesses need to generate it on the GST portal before transporting
goods. The bill contains key details such as the invoice number,
transporter information, and the reason for transport. Once generated,
the E-Way Bill is valid for a specific duration based on the distance
the goods are being transported, after which it needs to be updated or
renewed if the goods haven’t been delivered.
Additionally, I discovered that an E-Way Bill is linked to the invoice,
and the information entered into the bill is cross-checked with the
invoice and the GSTIN of the seller and recipient. This connection
ensures that no discrepancies arise during the transport process. Any
mismatch between the E-Way Bill and the invoice can lead to issues
at checkpoints, including fines or seizure of goods.
Another important takeaway was the penalties for non-compliance. If
an E-Way Bill is not generated when required, or if the information
provided is incorrect, the business may face significant penalties
under the GST law, which can affect the company's reputation and
financial stability.

Observation:
During my observation of the dispatch process, I saw how the
logistics team generates an E-Way Bill through the GST portal. Once
the goods are packed and ready for shipment, they input the details of
the invoice and the transporter information into the system. I noticed
that the entire process was streamlined using an internal ERP system
that integrated with the GST portal, allowing for real-time E-Way Bill
generation.
I also observed how the warehouse staff double-checked the value of
the goods before generating the E-Way Bill. If the total value was
over ₹50,000, they ensured that the bill was created; otherwise, they
proceeded without it. This reinforced the importance of compliance
and accuracy in documentation to avoid future complications.
At one point, I saw a situation where the E-Way Bill had to be
updated due to a change in the transportation route. This change
required inputting new data into the system, and a fresh E-Way Bill
was generated. I learned that this process is necessary because the
bill’s validity is linked to the specific transport details, and any
change in the journey (e.g., destination or transporter) can invalidate
the previous one.
DAY-16

Payment Processing

Learning:
On Day 16, I focused on Payment Processing, a critical aspect of the
financial workflow in any business. I learned that payment processing
involves the handling of payments received for goods and services
rendered, and it encompasses everything from the invoice generation
to the final settlement.
I began by understanding that payment processing is not just about
receiving payments but ensuring they are accurately recorded in the
company’s financial system. The process begins when an invoice is
issued, followed by the receipt of payment, which could be through
various methods such as bank transfers, cheques, or digital payment
systems like UPI, credit cards, or e-wallets.
A key learning point was the importance of maintaining clear records
of each payment transaction. Once a payment is made, it must be
verified and reconciled with the corresponding invoice to ensure that
the amounts match and no discrepancies exist. This reconciliation
process is essential for accurate bookkeeping, as it ensures that the
company’s accounts receivable match the actual funds in the bank.
I also learned about the role of payment terms in this process.
Businesses often agree on payment terms with customers upfront—
whether it’s immediate payment, a certain number of days after
invoice issuance (e.g., 30 days), or a payment on delivery. These
terms help companies manage their cash flow by knowing when
payments are expected and how to handle overdue payments.
Finally, I learned about the challenges businesses face in payment
processing, including dealing with payment delays, errors in
transaction details, and the need for accurate cash flow forecasting.
Delays in payments can lead to disruptions in the business cycle,
which is why many businesses set up automated reminders and
follow-up procedures to ensure timely payments.

Observation:
Throughout the day, I observed the process of payment processing
within the finance team. I witnessed how payments were verified
against the invoice records. The team would first ensure that the
payment amount matched the invoice total. If there were any
discrepancies (e.g., an overpayment or underpayment), the team
would investigate and correct them before processing the payment.
I also saw how payments were received through various channels,
including bank transfers and cheques. For bank transfers, the finance
team would regularly check the company’s bank account for incoming
payments. When a payment was received, it would be matched
against the corresponding invoice, and the payment would be
recorded in the company’s financial system. For cheques, the process
was slightly longer, as they needed to be physically deposited, and
confirmation from the bank was awaited.
What stood out to me was how automated reminders were used for
overdue payments. The system automatically generated emails to
clients who had not paid by the due date, and the finance team
followed up with phone calls when necessary. This automation saved
the team time and ensured that overdue payments were flagged
immediately, preventing potential cash flow issues.
DAY-17

Taxation and Invoices

Learning:
On Day 17, my focus shifted to the role of Taxation in the invoicing
process, particularly in the context of GST (Goods and Services Tax)
compliance. I learned that every invoice generated for the sale of
goods or services is subject to specific tax rules, which vary
depending on the nature of the transaction, the type of goods or
services being sold, and the location of the buyer and seller.
The day began with an introduction to the GST system and how it
impacts invoicing. In India, GST is a value-added tax that is applied at
each stage of the supply chain. The tax collected at each stage is used
to offset the tax paid on the previous stage, allowing businesses to
pass on the tax burden incrementally. This concept of input tax credit
(ITC) allows businesses to claim back the tax paid on purchases,
reducing their overall tax liability.
I learned that GST invoices must include specific details, such as the
GSTIN (Goods and Services Tax Identification Number) of both the
seller and the buyer, the GST rates applicable to the products or
services being sold, and a clear mention of whether the sale is subject
to CGST (Central GST), SGST (State GST), or IGST (Integrated
GST), depending on whether the transaction is intra-state or inter-
state.
I also learned about the different types of tax invoices:
Standard Tax Invoice: This is used for regular sales transactions,
where the tax is charged and included in the price of the goods or
services.
Revised Tax Invoice: Issued when there is an error in a previous
invoice, such as an incorrect GST amount or missing information.
Bill of Supply: A simplified invoice used when the sale is exempt
from GST or when a business is not required to collect tax (e.g., for
exempted goods or services).
A significant takeaway was the importance of correctly categorizing
products and services according to their HSN (Harmonized System of
Nomenclature) codes. The HSN code determines the applicable tax
rate for goods, and its accuracy is crucial for compliance and avoiding
penalties during audits.

Observation:
During my observation, I had the opportunity to sit with the accounts
team as they reviewed invoices for GST compliance. I witnessed how
every invoice generated was carefully checked to ensure that it
adhered to the required GST guidelines. The team ensured that the
GSTIN of both the seller and the buyer was mentioned correctly and
that the correct tax rate was applied based on the HSN code of the
product or service.
I also observed the importance of revised invoices. There was a
situation where a sales invoice had an error in the GST amount due to
a misclassification of a product. The accounts team quickly identified
the issue and issued a revised tax invoice to correct the error. This
highlighted the critical role of maintaining accurate records and
ensuring that corrections are made promptly to avoid discrepancies
during GST filings.
One thing that stood out was how the ERP system was used to
automatically calculate the correct tax rate based on the HSN codes.
The system would flag any potential issues, such as incorrect GSTINs
or missing details, before the invoice was finalized. This system-
driven process greatly reduced the risk of human error and ensured
that every invoice was compliant with GST regulations.
Lastly, I witnessed a discussion about the impact of late GST
payments. The team discussed how delays in filing returns or paying
taxes could lead to interest charges and penalties. This underlined the
importance of maintaining timely invoicing to ensure that the
company remained in compliance with GST laws and avoided any
unnecessary costs.

DAY-18

E-Way Bills

An E-Way Bill is generated electronically through the GST portal, and

it contains details such as the GSTIN of both the seller and the buyer,
along with information about the goods being transported (like
product details, HSN codes, quantity, and value). The bill also
includes the vehicle number used for transportation, which is essential
for authorities to monitor and verify the movement of goods during
transit.
I learned that E-Way Bills are necessary in several scenarios:
1. Intra-state or inter-state transportation of goods exceeding ₹50,000.
2. Inter-state movement of goods even for exempted items, provided
the value exceeds the threshold.
3. Sale, transfer, or return of goods between connected businesses.
The E-Way Bill must be generated before the goods are shipped, and
the transporter needs to carry the bill along with the physical goods.
Without the E-Way Bill, goods in transit could be detained by
authorities, leading to delays or penalties.
One key takeaway was the process of updating or canceling an E-Way
Bill. If the details in the bill change—for example, if the
transportation route or goods being transported change—the E-Way
Bill needs to be updated. If the goods are not moved, the E-Way Bill
can be canceled within 24 hours. This flexibility is important for
correcting any mistakes or discrepancies.
Additionally, I learned about the importance of compliance with the
E-Way Bill system. The system helps businesses avoid legal trouble
by ensuring that all goods in transit are accounted for and compliant
with the tax law. Failing to generate an E-Way Bill when required can
lead to penalties and delays in supply chains.

Observation:
During my observation, I was able to see the E-Way Bill process in
action in the company’s logistics department. I witnessed the team
generating an E-Way Bill through the GST portal for a large shipment.
The team inputted the product details, including the HSN code, GST
rates, and value of the goods. I observed how they carefully matched
the details of the invoice to the E-Way Bill to ensure accuracy before
generating the document.
It was clear that the E-Way Bill system is tightly integrated with the
company’s ERP system. When an order is confirmed and the goods
are ready for shipment, the system automatically generates a draft E-
Way Bill based on the invoice details. The logistics team then reviews
the bill, adds transportation details (like the vehicle number), and
generates the final E-Way Bill.
I also observed the importance of timely E-Way Bill generation. There
was an instance where a shipment was delayed because the team
hadn’t generated the E-Way Bill on time, which led to a potential
compliance issue. This emphasized the need for proper coordination
between the sales, finance, and logistics teams to ensure that all
required documentation is ready before the shipment moves.
One interesting part of the observation was when the team had to
update an E-Way Bill. The originally specified vehicle for the
shipment was unavailable, so the team had to change the vehicle
number in the E-Way Bill. I saw firsthand how easy it was to make
such updates on the GST portal, but also how important it was to
ensure that all details were accurate and up-to-date to avoid penalties
during transit.
I also learned that the team checks the validity of the E-Way Bill
regularly, especially for long-distance shipments. The bill is valid for
up to 15 days, and after that, a new one must be generated. This
ensures that goods are not transported with outdated documentation,
which could lead to goods being stopped or detained by authorities
DAY-19

Challenges with Invoicing

Learning:
On Day 19, I focused on the challenges businesses face with
invoicing, which, as I soon learned, can have a significant impact on
operations and compliance. Throughout the day, I explored various
issues that arise during the invoicing process and how they can be
avoided or managed.
One of the primary challenges I learned about was invoice
discrepancies. These can occur when the details on the invoice do not
match the details in the purchase order (PO) or delivery challan. For
instance, differences in the quantity of goods, pricing, or tax rates can
lead to confusion and delays in payments. I learned that it’s crucial for
teams to regularly verify and cross-check invoices against POs and
GRNs to catch such issues before they become a problem.
Another challenge involves late invoicing. When invoices are
generated after a delay, it can disrupt cash flow and lead to issues with
GST filings. In some cases, businesses might face penalties if invoices
are not issued within the prescribed time. I observed that businesses
often struggle with delayed invoicing due to manual processes or lack
of coordination between departments. I learned that adopting an
automated invoicing system could greatly reduce the risk of this issue.
The complexity of multi-currency invoices in international
transactions was another challenge discussed. When businesses
engage in cross-border trade, they often face the problem of currency
conversion, leading to discrepancies in amounts and difficulties in
calculating GST on foreign transactions. This requires constant
monitoring and precise calculations to ensure that both tax rates and
exchange rates are accurately applied.
I also learned about the issue of incorrect GST application on
invoices, especially for businesses dealing with both taxable and
exempt goods. Mistakes in calculating the tax rate or incorrectly
categorizing goods under the wrong tax bracket can lead to serious
legal consequences and loss of credibility. I learned that it's essential
to have knowledgeable staff who can understand the nuances of GST
laws and apply them accurately to avoid fines or audits.
Finally, I discovered the challenge of maintaining proper
documentation for audits and tax filings. Invoices are a key part of a
business's audit trail, and any missing or inaccurate invoices can
trigger red flags during tax audits, potentially leading to penalties or
even legal action. I understood the importance of digital archiving
systems and regular checks to ensure all invoices are accounted for
and properly stored.

Observation:
As I shadowed the finance and accounts team, I observed firsthand
how invoice-related challenges were handled. One of the main things
I noticed was how the team dealt with invoice discrepancies. They
maintained a two-step verification process, where the accounts team
cross-checked the invoice with the original purchase order and
delivery challan. If discrepancies were found, the team would reach
out to the vendor or supplier to resolve the issue before proceeding
with payment. I saw how manual processes could sometimes slow this
down, especially when there were multiple points of contact involved,
which made me realize how important it is to automate this part of the
process to reduce errors.
During the day, I also observed an instance of late invoicing. A
customer had delayed issuing an invoice for a product, which caused
a delay in the payment cycle. This disruption affected the company's
cash flow, highlighting how crucial timely invoicing is to maintaining
financial stability. The team was working on a solution to automate
invoicing and set reminders to ensure invoices were sent out
promptly, which made me realize the benefits of digital invoicing
systems in preventing this issue.
One of the more complex issues I saw was related to multi-currency
invoicing. The finance team was preparing an invoice for an
international customer, and the exchange rate fluctuation was causing
issues with converting the sale amount to the local currency. I saw
how carefully they had to calculate the correct tax rates and ensure the
correct GST application based on the current exchange rate. This
process involved multiple checks and discussions with the external
accounting team to avoid any discrepancies.

DAY-20

Invoicing Best Practices

Learning:
Today, I focused on the best practices that help businesses manage
invoicing efficiently and stay compliant. I learned that using
standardized invoice templates ensures clarity and legal compliance,
as they include all required details like GSTIN, HSN codes, and tax
breakdowns.
I also understood the importance of the three-way matching process—
comparing invoices with purchase orders and goods receipt notes to
prevent discrepancies. Automating this through ERP systems reduces
errors and saves time.
Digital invoicing and automation stood out as essential. Features like
auto-reminders, e-invoicing integration, and real-time tracking
improve accuracy and cash flow management. Another key takeaway
was the value of having clear payment terms to avoid disputes, and
keeping a digital archive of invoices for audits and compliance.

Observation:
I observed the accounts team using a consistent invoice format via
accounting software, which auto-filled necessary fields. During a
vendor invoice check, I watched the team match it with the PO and
GRN before approving it—this ensured accuracy.
They also used dashboard reminders for due invoices, helping them
stay on top of collections. I noticed how clearly written payment
terms helped resolve a client dispute smoothly. All invoices were
archived digitally and well-organized for quick access during audits.
The day showed me that small, consistent practices make a big
difference in avoiding errors and maintaining control over invoicing.
DAY-21

Delivery Challan: Legal Requirements and

Format

Learning:
Today, I learned about the legal structure and usage of a Delivery
Challan (DC), which is used when goods are moved without an
invoice such as for job work, stock transfer, or exhibition purposes. It
must include specific details like the challan number, date,
consignor/consignee details, description of goods, quantity, and GST
information if applicable.
Unlike an invoice, a DC does not involve payment and is primarily
used to document the movement of goods. I also learned that under
GST rules, delivery challans must be issued in triplicate: one copy for
the recipient, one for the transporter, and one for the sender.
It's also important that the challan clearly states the purpose of
movement, and that businesses must keep records of all challans for
compliance and audit readiness.

Observation:
In the logistics department, I observed how delivery challans were
prepared when goods were sent to a warehouse. The team used a
digital format that auto-generated serial numbers and included all
mandatory fields. They ensured proper classification of goods and
reasons for movement, like "transfer to branch".
I also saw the challan being printed in triplicate and attached to the
shipment one for the driver, one retained, and one sent to the
destination site. This practice ensured clarity during transport checks
and helped in smooth stock reconciliation later.

DAY-22

Delivery Challan vs Invoice

Learning:
Today, I focused on the differences between a Delivery Challan and
an Invoice. While both are used in the movement of goods, their
purposes are distinct. An invoice is a commercial document used
when goods are sold and payment is involved—it includes tax details,
pricing, and payment terms.
A delivery challan, on the other hand, is used when goods are moved
without a sale, such as for repair, job work, or stock transfer. It
doesn’t include price or tax amounts unless needed, and it serves
mainly as a proof of goods movement. I learned that invoices are
critical for GST returns, while challans are essential for compliance
during non-sale transfers.

Observation:
I observed the team handling both documents during different
transactions. For a customer order, they issued a tax invoice with full
details for billing and GST. For a branch stock transfer, they used a
delivery challan mentioning the reason for movement and item
description but no pricing.
Seeing both documents side by side helped me understand their roles
—invoices finalize sales, while challans support non-sale logistics and
ensure GST compliance during movement.

DAY-23

Common Mistakes in Delivery Challans

Learning:
Today, I learned about the common errors businesses make while
issuing delivery challans, which can lead to compliance issues. A
frequent mistake is missing mandatory details—such as challan
number, date, quantity, or purpose of movement. Without these, the
challan may be rejected during transport checks or audits.
Another issue is incorrect classification of goods or failing to state
whether they are taxable or exempt. Sometimes, businesses
mistakenly use a delivery challan when an invoice is legally required,
especially during inter-state movements or sales. I also learned that
improper record-keeping of issued challans can create reconciliation
problems

Observation:
I saw the team review a returned challan that lacked the reason for
movement, which led to confusion during transport inspection. In
another case, a challan was incorrectly used instead of a tax invoice
for a sale, causing GST filing complications.
The team has now implemented a checklist and review process before
dispatch, ensuring every challan is complete and compliant. This
showed me how small errors in documentation can disrupt operations
and invite penalties.

DAY-24

Best Practices for Delivery Challans

Learning:
Today, I focused on the best practices for preparing delivery challans
effectively. Using standard formats that include all required details—
challan number, date, description, quantity, and reason for movement
—is essential. Challans should be issued in triplicate and linked with
inventory systems for traceability.
Clear mention of movement purpose and consistent digital record-
keeping ensures smoother audits and reconciliations. I also learned
that regular internal checks prevent errors and ensure that challans are
used only when legally appropriate.

Observation:
I observed the dispatch team use ERP-linked templates to auto-
generate challans. Before goods left, each challan was reviewed and
printed in three copies for proper documentation. The team stored soft
copies in an organized digital folder, ready for audit reference.
This disciplined approach minimized mistakes and showed how
strong documentation builds trust and compliance.

DAY-25

Final Reflections and Key Takeaways

Learning:
Over the past 24 days, I’ve developed a strong understanding of the
core documents used in business logistics and compliance: invoices,
delivery challans, purchase orders, and E-Way bills. I learned how
each document serves a specific function in ensuring legal, financial,
and operational accuracy.
What stood out was the importance of accuracy, consistency, and
digital integration. Errors in any document—be it an invoice
mismatch, an incorrect challan, or an unlinked PO—can delay
operations and trigger compliance issues. I also realized the crucial
role of cross-department coordination in ensuring that documentation
reflects the actual flow of goods and services.

Observation:
Looking back, I saw how teams rely heavily on automated tools,
checklists, and internal audits to maintain documentation quality.
Whether it was cross-verifying invoice data or ensuring a challan
matched the movement reason, every detail counted.
This experience taught me that mastering these processes isn’t just
about paperwork it’s about supporting efficient, transparent, and
compliant business operations.

Chapter – 3
 Observations & Conclusion

Observation

During my 24-day internship, I had the opportunity to closely observe

how essential business documents—such as invoices, delivery
challans, purchase orders, and E-Way bills—function in real-world
operations. What became immediately clear is that these documents
are not independent or isolated. Instead, they form a tightly
interlinked system where one document feeds directly into another. A
small error in one can disrupt the entire chain. For example,
something as simple as an incorrect GST code on an invoice can
result in mismatched E-Way bills, miscalculated taxes, shipping
delays, and even compliance issues during audits. This experience
taught me that precision and consistency in documentation are not
optional they’re fundamental to a company’s operational and legal
well-being.
One major lesson was the importance of getting even the smallest
details right. I saw how a single-digit mistake in a GSTIN or a wrong
product code could delay payments, disrupt vendor relationships, or
prevent the business from claiming input tax credit. Such errors often
trigger internal confusion, lead to manual rework, and in some cases,
cause disputes. This showed me how vital it is for employees to
double-check entries, especially when those entries feed into multiple
systems and departments.
I also observed the role that ERP systems play in simplifying these
processes. These systems are incredibly useful for automating tasks
like generating invoices or creating E-Way bills from PO data.
However, I quickly realized that automation doesn’t eliminate human
error. If the initial input is wrong like outdated vendor details or
incorrect HSN codes the entire chain of documents is affected. while
ERP tools improve efficiency, human oversight remains
transport. Once generated, the E-Way Bill is valid for a specific
duration based on the distance the goods are being transported, after
which it needs to be updated or renewed if the goods haven’t been
delivered. which means the shipment gets delayed. A breakdown in
communication, even for a day have a ripple effect on the entire
operation. During my time there, I saw how effective cross-
department collaboration helps prevent such bottlenecks and ensures
that every step flows smoothly.
On the compliance side, the internal teams were generally very
thorough when it came to GST regulations. They were careful to
include all necessary elements like GSTINs and HSN/SAC codes in
their documentation. However, many vendors didn’t show the same
level of diligence. Some submitted invoices without GST numbers or
with missing tax codes, which led to delays in approval and
complications with ITC claims. This showed me the importance of
not only training internal staff but also ensuring that vendors
understand and follow proper documentation practices.
Perhaps the most valuable takeaway was seeing how theory translates
into practice. I had read about different types of documents—like
proforma invoices and commercial invoices—but seeing them used in
real transactions helped solidify their purpose and importance. I also
saw how a delivery challan differs from an invoice, not just in format
but in function, especially in how they support the movement of
goods versus financial accountability.
Overall, this internship gave me a much deeper understanding of how
documentation is the backbone of business operations. These
documents are far more than just pieces of paper—they ensure
regulatory compliance, support financial accuracy, and enable smooth
logistics. Observing how everything connects helped me appreciate
the need for precision, communication, and continuous vigilance
in handling them

Challenges Faced

Throughout my internship, I encountered several real-world

challenges that significantly shaped my understanding of
documentation processes and compliance management within a
corporate setting. One of the initial hurdles was identifying and
differentiating between documents that appeared similar but served
distinctly different legal and operational purposes. For example, a
proforma invoice closely resembles a commercial invoice in format,
but unlike the latter, it has no legal standing and is typically used for
quotes or customs declarations. In contrast, a commercial invoice is a
binding document that includes critical information like GSTIN,
HSN/SAC codes, and tax breakdowns, which are essential for
accounting and GST compliance. Similarly, I initially found it
difficult to distinguish between debit and credit notes. Over time, I
understood that a debit note is issued by the buyer to indicate an
amount owed due to under-invoicing or additional charges, whereas a
credit note is issued by the seller when providing a discount or refund.
Misuse of these documents can result in errors in GST returns, vendor
reconciliation, and audits.

Another major issue was the prevalence of manual entry errors,

particularly in companies that still rely on partially automated or
offline systems. Mistakes such as incorrect HSN/SAC codes,
mismatched tax rates, or erroneous vendor details often went
unnoticed until audit or GST filing stages, creating the need for time-
consuming corrections and revalidations. This underscored the
importance of adopting ERP systems with automated validation rules,
standardized dropdowns, and pre-filled templates to reduce human
error and improve consistency.
E-Way Bill (EWB) generation was another area where challenges
frequently arose. These bills require timely and accurate inputs such
as transporter details, vehicle numbers, and invoice references. I
observed that in urgent dispatch scenarios, bills were sometimes
generated using estimated or incomplete data, leading to non-
compliance, cancellations, and re-issuance. Errors in EWB
management could lead to fines during transit checks. A structured
checklist-based SOP, along with cross-verification between logistics
and accounts teams, would go a long way in avoiding such issues,
along with alerts for upcoming expirations of bill validity.
Document inconsistency across departments also posed problems.
While each department issued necessary documents like purchase
orders or delivery challans, the formats varied significantly in terms
of layout and data fields. This led to confusion during consolidation
and sometimes resulted in errors during GST filings, especially when
mandatory information like GSTIN or vendor addresses was missing.
A centralized repository of standardized templates, ideally integrated
into the ERP, would ensure uniformity and minimize such cross-
functional inefficiencies.
Moreover, I realized that employees from non-finance departments
often lacked even basic understanding of GST-related compliance.
Sales and dispatch staff were unaware of the implications of improper
invoice sequencing, and warehouse personnel sometimes failed to
update delivery challans accurately. This created backlogs, repeated
communications, and additional verification responsibilities for the
finance team. Regular training workshops, visual guides, and ERP-
integrated help tools could empower non-finance staff to contribute
more effectively to compliance.
Vendor non-compliance also emerged as a frequent issue. Several
vendors submitted invoices lacking key details such as GSTIN,
HSN/SAC codes, or tax components. Despite repeated
communication, some continued to send incomplete formats, which
affected Input Tax Credit (ITC) claims and led to reconciliation
mismatches. Establishing clear vendor documentation guidelines,
enforcing a standard invoice format, and maintaining a compliance
scorecard for vendors could improve accountability and accuracy.
Lastly, the pressure of filing deadlines and audit periods revealed
systemic issues in documentation management. In many instances,
incomplete or outdated documents had to be hurriedly updated or
reconciled at the last minute, leading to overlooked errors and
weakened audit readiness. These high-pressure situations highlighted
the need for continuous documentation hygiene. Conducting monthly
internal compliance checks, assigning documentation responsibilities
within departments, and using live dashboards to monitor pending
tasks could significantly streamline the process and reduce stress
during critical filing windows.
In conclusion, these challenges served as powerful learning
experiences that bridged the gap between academic knowledge and
professional practice. They emphasized the importance of accuracy,
system integration, interdepartmental collaboration, and ongoing
compliance efforts to ensure smooth and legally sound operations in
any business environment.

Conclusion:
Reflecting on My 25-Day Learning
Experience.

Over the past 25 days, I set out to understand the documents that
silently power every business transaction. What started as curiosity
about invoices turned into a comprehensive journey through the
financial and logistical backbone of business operations—including
debit and credit notes, delivery challans, purchase orders, and E-Way
Bills.
Week 1 gave me a strong foundation in invoices. I began to see them
not just as billing tools, but as key documents that support accounting,
tax compliance, and financial clarity. The variety in formats between
companies was eye-opening, yet the core components remained the
same—proof that structure matters. I especially found it interesting
how proforma invoices differ in purpose and how commercial
invoices in exports are detailed enough to satisfy international
regulations.
In Week 2, I moved on to notes and delivery challans. Learning about
debit and credit notes helped me understand how businesses stay
transparent and fair when corrections or returns are needed. Delivery
challans, on the other hand, showed me the logistics side of
documentation. They serve as physical evidence of goods being
moved, even when an invoice isn’t involved. Watching how they’re
generated, tracked, and signed at multiple points showed me how
critical they are for inventory and accountability.
Week 3 focused on purchase orders (POs), which truly connected a lot
of dots for me. I always thought POs were just pre-buying documents,
but now I understand their strategic role in budgeting, vendor
communication, and process control. From headers to item lists and
detailed terms, every section is there for a reason. Following a PO
from creation to payment made me realize how multiple teams—
procurement, logistics, finance—are all linked through this single
document
Week 4 introduced me to the E-Way Bill system, which is a must for
the lawful transportation of goods under GST. It was fascinating to
learn how Part A and Part B come together, and how errors in this
document can lead to penalties. Watching one being generated in the
ERP system gave me a real sense of how compliance and operations
go hand in hand. E-Way Bills are more than regulatory requirements
—they’re part of a digitized ecosystem that ensures traceability and
control.
Looking back, this wasn’t just about learning what each document
looks like. It was about understanding the flow of information, the
coordination between departments, and the need for accuracy and
timing. Each document plays a different role, but they’re all
interconnected—from the moment a PO is created, to when goods are
dispatched with a challan, billed with an invoice, and shipped under
an E-Way Bill.
What I appreciated most was how real-world observation—like
watching teams work, reading actual documents, and asking questions
—brought everything to life. This learning plan gave me not just
technical knowledge, but practical context and a deeper appreciation
for how organized documentation keeps businesses running smoothly
and transparently.