>
> 1. when i select itemcode from dropdown, the form to fill itemname and 
> sellingprice from the stockitems table
>

i think you can achieve it using form.validate(), use query for stockitems 
table and then insert itemname and sellingprice base on the row of 
stockitems
 

> 2. when i enter qty, the amount to be calculated as qty*sellingprice
>

this one you can do it, either with compute on dal side or you can 
calculate it during form.validate on above method.
e.g. for compute
db.sales.compute = lambda r: r['sellingprice']*r['qty']

ref:
http://web2py.com/books/default/chapter/29/06/the-database-abstraction-layer#Computed-fields

another way, i think you can learn much from the web2py appliances 
PosOnlineStore
ref:
https://github.com/mdipierro/web2py-appliances/tree/master/PosOnlineStore
https://github.com/mdipierro/web2py-appliances/tree/master/EStore

best regards,
stifan

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