You can record a credit note, for issue to buyers, to record sales returns. A credit note can be offset by the buyer against future purchases.
To create a credit note for taxable goods
1. Go to Gateway of Tally > Accounting Vouchers > Crl+F8: Credit Note.
2. Enter the Original Invoice No. of sales invoice against which credit note is recorded.
3. Select the required Party’s A/c Name from the List of Ledger Accounts.
4. Enter the required details in Party Details screen.
5. Select the common sales ledger.
6. Select the required taxable stock item.
7. Enter Quantity and Rate for each stock item.
8. Select the common VAT ledger.
9. Select the surcharge ledger.
10. Set the option Provide VAT Details? to Yes.
11. Enter the sales details and select the Nature of Return as Not Applicable to account for sales returns, as shown below:
If the credit note is being recorded for any other purpose, select the relevant Nature of Return.
12. Enter the purchase value if the purchase was made from exempted unit. Press Enter to return to credit note. The credit note appears as shown below:
13. Press Enter to save.