How to enter sales return entry in Tally ERP
A Return to the Self A journal, also known as a sales return in a tally journal or a sales credit daybook, is the main entry book or a daybook used to keep track of sales returns. Put another way, it’s the notebook that’s used to keep track of products that the recipient returns. The credit note is the primary document used as evidence for recording transactions in the sales returns log. This article attempts to explain the procedure for sales return entry in tally.
Reasons for sales return
Following are the reasons for sales return
- Products that have reached their expiration date or have become obsolete are available from various brands.
- Delays in receiving orders that are not in order
Credit Notes in Tally. ERP 9
Follow the procedures below to enable the debit note option in Tally.
Press F11 – Shortcut for Company Features from Tally’s Gateway.
Set the option Use debit/credit notes to YES on the Accounting Features screen > Invoicing.
Set YES for the following tile: “For credit notes, use invoice mode.”
Creating Credit note in Tally ERP 9
Let’s divide this issue into smaller chunks: (the following is from YYY LTD’s books) (Click here to know more about journal voucher in Tally. )
The kind of return
Return on investment. M/s YYY INC. is receiving the returned goods obtained from the recipient of goods (M/s XXX Ltd) in the case at hand.
Returning for a reason
Damage to the goods. You’ll need a source document: a credit note or sales return the journal to record this transaction.
What is the best way to prepare it in Tally ERP 9?
Step 1: From the Tally Gateway, go to the Accounting Vouchers screen.
Step 2: On the keyboard, press CTRL + F8, or use the mouse pointer to pick a Credit note from the side table.
Step 3: Prepare the ledgers by creating them.
Under Sales Accounts, or assuming that the above example is an Inter-State transaction, we can use the ledger used for forwarding Inter-State sales instead of creating a Sales return account and crediting it will lower sales on a net basis.
It is not necessary to create a new ledger at this stage because the recipient, party, or debtor ledger would have already been formed at the time of sale.
The applicable tax ledger for this transaction would be IGST (because it is an interstate transaction), even though it would have already been generated under Duties and Taxes with the required GST rate of 5% in this case.
Step 4: Using the Accounting Voucher Screen > Credit Note, complete the journal entry. Press F2 and change the transaction date to 01.12.2018.
Step 5: In Invoice mode, select Credit Note. Fill in the details of the original invoice number against which the products are being returned, as well as the invoice or sales date (15-11-2018)
Step 6: Now choose a party or a debtor ledger (M/s XXX Ltd). Select the relevant ledger under ledger. Select the sales return ledger or the GST sales ledger in terms of state (separately created)