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Billing Software for Wholesale & Distribution Businesses

· 4 min read
LKG for Billing Team
LKG for Billing Team
Product & Customer Success Team, LKG for Billing
Wholesale and distribution business icon

Running a distribution business means managing stock in both directions — what comes in from suppliers and what goes out to retailers — while keeping track of which relationships are actually profitable. Here's how billing software supports that whole loop.

Raising Purchase Orders to Suppliers​

Before stock arrives, it usually starts as a purchase order. Rather than tracking orders in a notebook or a separate spreadsheet, you can raise a purchase order directly against a supplier, listing the products and quantities you're expecting.

Purchase order screen for a distribution business

Having purchase orders in the same system as your invoices means you always have one place to check what's on order, rather than cross-referencing supplier emails when a retailer asks about lead time. See the purchase order documentation for the full workflow.

For a distributor working with several suppliers at once, this also makes it easier to compare terms — you can see, at a glance, what's been ordered from each supplier and how consistently they deliver against those orders over time, instead of relying on memory or a scattered paper trail.

Recording Purchase Bills​

Once goods arrive and the supplier's bill comes in, recording it as a purchase bill ties the transaction to your accounts and updates stock in one step. This is what turns a purchase order into an actual inventory increase and a payable you can track.

Purchase bills list

Keeping purchase bills alongside purchase orders means you can compare what was ordered against what was actually billed and delivered — useful when a supplier short-ships or prices shift between order and delivery. Full detail is in the purchase bills documentation.

Recording purchase bills promptly also matters for GST purposes — the input tax credit you can claim depends on having accurate, timely records of what you've purchased and the tax paid on it. Treating purchase bills as a routine step rather than an afterthought keeps that record clean without extra reconciliation work later.

Tracking Inventory Movement In and Out​

A distribution business moves stock constantly — pallets in from manufacturers, cartons out to retailers, sometimes on the same day. The inventory overview gives you a live view of stock levels, transactions, and adjustments, so you're working from actual numbers rather than a count that's a week stale. Product groups also help here: instead of one flat list of every SKU you distribute, you can organize by supplier, category, or product line, which makes stock reviews and reordering far faster when your catalog runs into the hundreds or thousands of items.

Seeing Which Dealers Are Most Profitable​

Not every retailer or dealer you sell to is equally profitable, even if they order similar volumes — discounts, payment terms, and return rates all eat into margin differently. The partywise profit & loss report breaks down profitability by customer, so you can see at a glance which relationships are actually worth the volume and which ones are quietly costing you margin.

Partywise profit and loss report

This is the kind of report that's genuinely hard to build by hand from invoices alone — it needs cost data tied to each sale, which is exactly what falls out naturally once purchase bills and invoices are both recorded in the same system. Full detail is in the partywise profit & loss documentation.

Start Free, Scale as You Grow​

You don't need to commit to a paid plan to see whether this fits how you run your distribution business. The offline plan is free forever — ₹0, no credit card, no expiry — with 10 invoices a month, 10 customers, 20 products, 10 product groups, and unlimited users on the same LAN network. If you'd rather run things from the cloud, there's a free 30-day cloud trial with the same limits. As your purchase order and invoice volume grows, you can move to a paid plan without losing any history — see pricing for the full comparison, or head to download to get started.

Managing purchase orders and dealer relationships by hand? Download LKG for Billing and bring it all into one system.