Sales Return Entry in Tally.ERP 9
1. Sales Return Journals in Accounting
A Return inward Journal or sales returns journal or sales credit day book is a prime entry book or a daybook which is used to record sales returns. To put it in other words, it is the journal which is used to record the goods which are returned by the receiver or goods. The primary document which is used as an evidence in recording transactions into sales returns journal is the Credit note.
2. Reasons for Sales Returns
- Expiration of products/ outdated
- Different brands
- Out of the order
- Delays in receipts
3. Credit Notes in Tally.ERP 9
To enable the option for debit notes in Tally, follow the steps below.
|Step 1 : -||From Gateway of Tally, press F11 – Shortcut for Company Features|
|Step 2 : -||Under Accounting Features screen > Under Invoicing, set the option Use debit/credit notes to YES.|
|Step 3 : -||
Set the following tile to YES for:
“Use invoice mode for Credit notes”
4. Creating a Credit Note in Tally.ERP 9
LET’S UNDERSTAND THIS WITH AN EXAMPLE : M/S. XXX LTD RETURNED GOODS WORTH RS. 5000 WHICH ATTRACTED GST RATE OF SAY 5% ON 01-12-2018. TO M/S YYY INC. HOW TO RECORD THIS TRANSACTION USING TALLY ERP 9 ?
Notes : - Original value of goods purchased by M/s XXX LTD on 15-11-2018 Rs. 10,000/- (Excluding GST Rate of 5%). The goods we’re returned by M/s XXX Limited owing to defect in goods.
Let us break this problem into smaller modules : - (the following in the books of YYY LTD)
|Type of return -||Sales return. As in the given case, M/s YYY INC. is receiving the returned goods received from recipient of goods (M/s XXX Ltd)|
|Reason for return -||Damage in goods|
|Source document to record this transaction -||Sales return journal or Credit note|
|How Should you Prepare it in Tally ERP 9 ? -||
Step 1 : - From Gateway of Tally, we have to follow to Accounting Vouchers screen
Step 2 : - Press CTRL + F8 on the keyboard or just select Credit note from the side table using mouse pointer.
Step 3 : - Create/getting the ledgers ready
Step 4 : - Passing journal entry using Accounting Voucher Screen > Credit Note.