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Reverse Advances Received Under GST in TallyPrime

An advance receipt may no longer result in a sale, either because you are refunding the money to the party, or because goods or were returned.

Record Refund of Advance

In the Payment voucher,

1. Press Alt+J (Stat Adjustment) > select GST Nature of Receipt as Refund of Advance Receipt.
   
2. Under Particulars, select the party to whom you want to reverse the advance received.
3. In Refund Details screen, enter the required details.
   1. Particulars: Select the ledger used in the advance receipt.
   2. Refund Amount: Enter the amount you are refunding to the party.
   3. Press Ctrl+A to save the Refund Details screen.
      
4. Provide other necessary details in the voucher, and press Ctrl+A to save.

The liability against the advance is reversed automatically.

Record Sales Return for Advance

In case of sales return, you can add the sales returns amount to the GST advances so that you can set it off in the future invoices.

While recording a Credit Note,

1. Press F12 (Configure) > enable the option Add Returns Amount to GST Advance for adjustments.
   
2. Provide GST details: Yes.
3. Fill in the additional details for the sales return.
   1. Reason of Issuing Note: 01-Sales Return.
   2. Buyer’s Debit Note No.: Enter the debit note number
   3. Date: Enter the debit note date
      
   4. Press Ctrl+A to save the details.
4. In the Bill-wise Details screen, press Enter on the total amount.
   The Details of Advance Receipts to Update Advance Amount screen appears.
   
5. From the Pending for Adjustment list, select the advance and press Enter.
   You can select more than one advance, up to the total voucher amount.
6. Provide other necessary details, as needed, and press Ctrl+A to save the note.

Questions & Answers

1. Why should I select a Zero Valued reference?
   Select a Zero Valued reference when the original advance has been fully adjusted, but a sales return makes the amount available again. TallyPrime adds the sales return amount to that reference so that you can adjust it in future sales invoices.
2. If GST was already paid on advance, what happens when the advance is refunded?
   The GST liability is reversed or adjusted as per GST rules, ensuring no excess tax is paid.
3. Can an advance be partially adjusted through sales return and partially refunded?
   Yes, part can be adjusted via Credit Note, and the remaining can be refunded using Payment Voucher.