In case you have sold goods and some or all of the goods have been returned by your customer, you will need to account for such sales returns. Once you accept the goods that are returned, before or after receiving the payment for the same, you can record the transaction using the credit note feature of Tally.ERP 9.
On this page
When you accept sales return, record such returns by issuing credit notes.
In this section
● Sales returns before receiving the payment
● Sales returns after receiving the payment
If you are recording the sales returns before receiving the payment, you can select the reference as Agst Ref while linking the credit note to the sales invoice.
1. Enable the credit note feature.
a. Press F11 (Features) > F1 (Accounts).
b. Set the option Use debit and credit notes to Yes , to record the transaction in voucher mode.
If you want to record the transaction in invoice mode, set the option Record credit notes in invoice mode to Yes .
2. Open the credit note voucher screen.
a. Gateway of Tally > Accounting Vouchers > Ctrl+F8 (Credit Note).
b. Press Alt + I and select the invoice mode as per your business needs.
3. Specify the buyer details.
a. Original invoice no. and Original invoice Dt. : Enter of the sales invoice number and date, against which this sales return is being recorded.
b. Party A/c Name : Select the party name.
c. Party Details : Provide the Buyer details. You can also provide the Receipt or Order details as per your invoice requirements.
If you do not see the Party Details screen, press F12 (Configure), and set Enable supplementary details to Yes .
As always, you can press Ctrl + A to save and proceed.
4. Select the Sales ledger to allocate the stock items.
5. Provide the stock item details.
As in other transactions, you can create the item on the fly by pressing Alt + C .
a. Select the stock item.
b. Enter the Quantity . The Rate will be auto-filled, based on the rate entered in the previous transaction. However, you may choose to enter the Rate . The Amount appears automatically.
6. Select the bill-wise details.
a. Press F12 (Configure) > set Use defaults for bill allocation to No .
Henceforth, you can select the bill references in the Bill-wise Details screen, until you change the option in F12 (Configure) of the invoice.
b. Select Agst Ref , as the payment has not been received against the sales.
7. Provide Narration , if needed.
8. Accept the screen. As always, you can press Ctrl+A to save.
The credit note will appear in the Credit Note Register .
If you are recording the sales returns after receiving the amount, you can select the reference as New Ref while recording the credit note. When you provide the reference of the sales invoice, the credit note will be linked to it. Hence, when you raise a sales invoice on a later date, you can record it against this credit note.
1. Enable the credit note feature.
a. Press F11 (Features) > F1 (Accounts).
b. Set the option Use debit and credit notes to Yes , to record the transaction in voucher mode.
If you want to record the transaction in invoice mode, set the option Record credit notes in invoice mode to Yes .
2. Open the credit note voucher screen.
a. Gateway of Tally > Accounting Vouchers > Ctrl+F8 (Credit Note).
b. Press Alt + I and select the invoice mode as per your business needs.
3. Specify the buyer details.
a. Original invoice no. and Original invoice Dt. : Enter of the sales invoice number and date, against which this sales return is being recorded.
b. Party A/c Name : Select the party name.
c. Party Details : Provide the Buyer details. You can also provide the Receipt or Order details as per your invoice requirements.
If you do not see the Party Details screen, press F12 (Configure), and set Enable supplementary details to Yes .
As always, you can press Ctrl + A to save and proceed.
4. Select the Sales ledger to allocate the stock items.
5. Provide the stock item details.
As in other transactions, you can create the item on the fly by pressing Alt + C .
a. Select the stock item.
b. Enter the Quantity . The Rate will be auto-filled, based on the rate entered in the previous transaction. However, you may choose to enter the Rate . The Amount appears automatically.
6. Select the bill-wise details.
a. Press F12 (Configure) > set Use defaults for bill allocation to No .
Henceforth, you can select the bill references in the Bill-wise Details screen, until you change the option in F12 (Configure) of the invoice.
b. Select New Ref , as the payment has been received against the sales.
c. Provide Narration , if needed.
7. Accept the credit note screen. As always, you can press Ctrl+A to save.
You can settle this credit note by raising a sales invoice or payment voucher for the customer. Click here for details on adjusting bill references.
You can track the sales returns received from your customers from the Credit Note Register . It displays a monthly break-up of credit notes. You can view this report in browser .
1. Gateway of Tally > Display > Account Books > Journal Register > Credit Note Register .
2. Select the required month and press Enter .
3. Press F5 (Columnar) and set the options as required, to view the credit note columnar register.
The columnar Voucher Register of credit notes appears as shown:
To change the voucher type, press F4 (Change Voucher) in the Voucher Register .
Click here to see the possible F12 configurations for Credit Note Register.
