Summary of Post
Have you ever prepared Credit Note in Tally ERP 9 .If not, you can learn how to prepare a credit note in this tutorial. Credit note is an accounting document Issued by the seller to the buyer informing that his account has been credited due to sales return made by him.
For example a buyer bought goods for 1000 and returned goods worth 500. For seller it is a sales return. He has to given back the money 500 to the buyer or he has to deduct 500 from his account.
In Seller books of Accounts
When a customer returned to the seller,Seller has to account the return as sales return and issue a credit note to the buyer.
In Buyer Books of account
When a buyer is returning goods to the seller.The buyer treat the transaction as purchase return.and have to raise a debit note and send to seller along with goods.
Recommend Read: Prepare Debit Note in Tally.ERP 9
Other cases when credit note issued.
- Expense paid by parties on our behalf.
- Price difference in sales invoice.
- Discount given to parties after generating Invoice
Example with stock item
For entering, you have to activate it from F11 Configuaration.
How to Activate Credit Note in tally erp 9?
You should go to the following screen.
F11 Features> Inventory Features
F11 Inventory features are available from almost all screens of Tally.
- Enable Use debit and credit notes
- Record credit note in invoice mode: Set yes if required
Save and accept the Features screen. Credit not voucher will have activated.
How to enter Credit note in Tally?
Now let’s enter the above transaction in Invoice Mode.
Gateway of Tally>Accounting Voucher> Credit Note
Shortcut Key to Access this is voucher is Ctrl + F8. The voucher will look like this image.
To enter in Invoice mode,
- Click on item invoice button for entering withstock item
- Click on As invoice button to enter as Invoice mode.
Ledger Required for the Entry.
We need the following Ledger Account.
- Customer (Sundry Debtors) Ledger
- Sales Return Ledger
Create a sales return ledger under group sales if not already created.
Now enter all the details as follows in the order mentioned below.
- Change the date by pressing F2 in which debit note is entered.
- Original Invoice No: The Invoice number of sale bill.
- Original Invoice Dt: The date of Sales invoice.
- Party A/c Name: The name of party who returned the goods.
- Sales Ledger: The Sales Return Ledger created.
- Name of Item: The commodity retuned by customer, cement.
- Enter Quantity rate of the commodity returned.
- Enter narration if required.
Press enter to accept and save.
Entry in Normal mode
To enter credit normal mode you have to disable invoice mode, To do that go to
F11 Featues > F2 Statutory Features
Record credit note in invoice mode: No
Now let’s create this in accounting mode. In which no stock item involved
Examples of normal mode.
Enter the date
- Credit the party ledger
- Debit the expense paid by party on our behalf.
- Enter amount.
Press enter to accept and save the screen.