How to record Sales Return with Output VAT in Tally ERP 9

Recording the Sales Return entry with VAT is as similar as recording the Sales with VAT in Tally ERP 9 but here we need to take the Credit Note Voucher to record the Goods Return transaction in the Books of Accounts.

Recording Sales Returns with Output VAT @ 5% in Tally ERP 9

In order to start recording the Credit Note transaction using the Credit Note Voucher Type for Sales Returns with VAT first we need to create the Sales Return Ledger with VAT configuration in order to account it for VAT computation.

For the demo purpose here I have created the Sales Returns @ 5% ledger for recording the Sales Returns that comes under 5% VAT/Tax Class.

As similar to the VAT Sales entry here also we need to consider the Assessable value and VAT value of the Credit Note. So, enter the Assessable amount in the Sales Returns @ 5% ledger field and VAT amount in the Output VAT @ 5% ledger field. Here I have already created the Output VAT @ 5% Ledger under Duties & Taxes group and configured the VAT for Output VAT ledger.

Here you can use the Sales @ 5% VAT ledger also instead of Sales Returns @ 5% ledger and I will now show the similar effect in the VAT Computation Report.