Credit Note is a document issued to a party stating that you are crediting their Account in your Books of Accounts for the stated reason or vice versa. It is commonly used in case of Sales Returns, Escalation/De-escalation in price etc.
All features and functions of Sales Voucher and Credit Note Voucher are same. So just like Sale Voucher, you can record transaction in Credit Note either in Accounting Invoice or Item Invoice.
A Credit Note can be entered in voucher or Invoice mode (either Accounting / Items).
You need to enable the feature in F11: Accounting or Inventory features.
- To use it in Voucher mode you need to enable the feature in F11: Accounting Features - Use debit and credit notes.
- To make the entry in Invoice mode enable the option F11: Accounting Features - Record credit notes in invoice mode.
To go to Credit Note Entry Screen :
1. Go to Gateway of Tally > Accounting Vouchers.
2. Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8.
(A) Item Invoice Mode
Pass an entry for goods sold returned from Customer Chitra & Co. just like Sale Voucher :
This Credit Note will pass through Item Invoice ( by pressing ALT+I).
(B) Accounting Invoice Mode
Pass the Credit Note Entry for Price De-escalation for the month of March 2020 of Rs. 10,000 with GST @18% Adjustment to Chitra & Co.
This Credit Note will pass through Accounting Invoice ( by pressing ALT+I).
Note : The Ledger ‘ Price De-escalation’ should be created under Sale Account Group with Inventory Option – No, GST Applicable with all GST Details @18%.