Sales Returns (VAT)

Sales Returns (VAT)

When doing sales returns create credit notes against the original invoice.

  • Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Credit Note.

Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Credit Note.

In case the voucher is inactive, you will be prompted to activate the Credit Note voucher type. Select Yes or press Y to proceed.

  • Enter the reference number in the Ref. field.
  • Select the Party’s A/c Name from the List of Ledger Accounts.
  • Enter the required details in Party Details screen.
  • Select a common sales ledger in which the option Is VAT/CST Applicable is set to Applicable, and Set/Alter VAT Details is not enabled.
  • Select the required stock item whose VAT rate is specified either at the stock group or at the stock item level.

As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Items > press Enter.

  • Enter the Quantity and Rate.
  • Select the common VAT ledger.
  • The ledger must be grouped under Duties & Taxes in which the options:
    • Type of duty/tax is set to VAT.
    • Percentage of Calculation (eg 5) is set to 0.
  • Set the option Provide VAT Details to Yes and enter the relevant details.
  • .Enter Narration, if required.

The credit note appears as shown below:

  • Accept the screen. As always, you can press Ctrl+A to save.

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