When doing sales returns, you can create credit notes for taxable goods against the original invoice.
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 the Quantity and Rate .
8. Select the common VAT ledger.
9. Set the option Provide VAT Details to Yes .
10. 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 .
11. Select the required Nature of Return , and press Enter . The credit note appears as shown below:
12. Press Enter to save.