Credit Note (Sales Return)

What is Credit note?

A credit note 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 go to credit note entry screen

1. Gateway of Tally
2. Vouchers
3. Credit Note (Alt + F6)

You can view credit note report as follow

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

Do the following entry.

Sale Voucher: –

On 01/07/2021, Sold following goods to Gala Stationery, Borivali godown with Ref. No. GS -JULY-113                                 

Now View Report,

• Gateway of Tally —–> Display —–>Account Books —–> Sales Register
• Gateway of Tally —> Display —> Statements of accountant —> Outstanding —> Receivable

Receipt Voucher (F6): –

On 01/08/2021, Company received full amount against bill no GS -JULY-113 by cheque (3456096) through Kotak bank.

Credit Note Voucher: –

On 01/09/2021, following goods are returned from Gala Stationery due to damage, Borivali godown with Ref. No. GS -JULY-CN-113                                                                                             

You can view credit note report as follow

Gateway of Tally ——-> Display ——-> Account Books——- > Journal Register ——> Credit Note Register