What is Credit note?

A credit note voucher or credit memo is a commercial document issued by a seller to a buyer. Credit notes act as a source document for the sales return journal. In other words, the credit note is evidence of the reduction in sales.

Reasons for Sales Returns

1. Damages
2. Expiration of products
3. Different brands
4. Out of order

How to Enable Credit note in tally?

• Gateway of Tally —> Vouchers —> Other Voucher(F10) —> Credit note (Alt + F6)

How to change mode in tally?

1. Gate of tally
2. Vouchers
3. Credit Note (Alt + F6)
4. Change mode (Ctrl + H)
5. Select as Voucher

Do the following entry

Sales Voucher (F8): –

01/04/2021, Company sold goods worth of Rs.50, 000 to Meenakshi and Co with bill no. min/apr/001

Receipt Voucher (F6):-

01/04/2021, Company received worth of Rs. 50,000 from Meenakshi and Co against bill no. min/apr/001

Credit note (Alt + F6): –

On 02/04/2021, After checking the goods, Meenakshi company has returned damaged goods worth of Rs.5, 000 to company with bill no. min/apr/cr/note/01.

You can view credit note report as follow

• Gateway of Tally —> Display more report —-> Account Books—>Credit Note Register

Do the following entry as given below

Example (1)

Example (2)

Example (3)

Example (4)