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 > Ctrl+F8.
2. Enter the reference number in the Ref. field.
3. Select the 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 in Sales Ledger field.
6. Select the required taxable stock item.
7. Enter the Quantity and Rate.
8. Select the required common VAT ledger.
9. Set the option Provide VAT Details? to Yes.
o Enter the Date of returns.
o Press Enter to save, and return to debit note.
The credit note appears as shown below:
10. Press Enter to save.