A distributor’s day looks nothing like a counter shop’s. Salesmen leave early for their beats, retailers call in orders, trucks load from the godown, and every retailer expects its own rate. Billing software made for a single counter struggles with that. This guide covers what distributor billing needs and how to set it up.

Who wrote this guide

The EZ Solutions team wrote this guide. We build BillDo, a GST billing app for shops, wholesalers and distributors, and the wholesale distribution software page covers the wider industry. The setup below works as a checklist with any software.

What makes distributor billing different?

Distributor billing has to handle different prices for different retailers, orders from several sources, salesmen who sell and collect on the road, and stock in more than one place. A counter shop has one price, one person billing and one shelf. Each difference needs its own setup.

1. Price levels for each kind of retailer

Retailers, wholesalers and key accounts rarely pay the same rate. Price levels solve this: named price lists such as Retail, Wholesale or Special, with a price per item on each. Link every retailer to a level once, and each bill picks up the right rate automatically.

A manufacturer selling into several states may also need a price per item per state. A state price sheet overrides the level price for parties in that state.

2. Salesmen, territories and beats

Most distributors sell through salesmen who cover a territory on a weekly beat. Billing works better when it knows this:

  • Each retailer belongs to a territory and a salesman, so sales and outstanding can be seen per person.
  • A beat plan lists which retailers to visit on which weekday.
  • A salesman’s login shows only their own retailers, bills and collections.
  • Sales by salesman reports show performance and the base for any commission.

3. Orders from every direction

Orders reach a distributor by phone, from salesmen and from retailers who would rather not wait for a visit. One orders inbox for all three keeps them from being lost:

  1. Staff enter phone orders; salesmen enter orders on the beat.
  2. Retailers order through a private link shared on WhatsApp, seeing only their own price.
  3. Each order is accepted or rejected, then converted to a bill, in part if stock is short.

4. Stock in more than one godown

A shop, a warehouse and a delivery van are three stock locations. Billing from the right godown, and moving stock between godowns with a transfer, keeps each location’s count honest. Items with batches and expiry dates, such as food or medicines, need the earliest expiry sold first.

5. Credit limits and collections

Distributors give credit to most retailers, so outstanding grows quickly. Set a credit limit and credit days per retailer, see overdue amounts at a glance, and let salesmen record collections on their round. The guide to tracking udhaar covers the routine in more detail.

How BillDo handles distributor billing

BillDo switches these features on as modules, so a small shop is not buried in them and a distributor gets them all:

  • Price levels and state price sheets, with a bulk editor to set prices across items.
  • Salesmen and territories, with weekly beat plans and salesman logins limited to their own records.
  • A retailer order form opened from a private link, and an orders inbox that turns orders into bills.
  • Godowns and transfers, plus batches with expiry dates and earliest-expiry-first selection.
  • Credit limits, collections by salesman and a hand-over step for cash.
  • Reports for sales by salesman, party outstanding with ageing, and GST summaries for the accountant; the guide to sending billing data to Tally covers that step.

Where to start

Start with price levels and the retailer list, since every bill depends on them. Add salesmen and territories next, then the order link once retailers know their prices are right. Godowns and batches can follow when the basics run smoothly.

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