Sales Return (or) Credit Note VAT Entry

Sales Return transactions are entered through Credit Note Voucher in Tally Accounting Business Software Package. Here we are recording a Sales Returns transaction by taking Taxation and Inventory in effect. As this is the one of the accounting transactions, to record this in Tally it is grouped under Transactions in Gateway of Tally screen. Transactions are recorded using Vouchers so you need to go with Accounting Voucher.

VAT Sales Return transactions in Credit Note Voucher Entry

In this article I am showing you the way to record the Sales Tax/VAT(Value Added Tax) of 5% Sales Returns transactions.Required Ledgers, Stock Items to proceed the transaction

1. Create a Company in Tally ERP 9.
2. Enable VAT for that Company.
3. Create Sales Return Ledger with 5% VAT.
4. Create Output VAT 5% Ledger.
5. Create VAT Commodity.
6. Create Stock Item.

Note: Even you can use Sales Ledger instead of creating Sales Return Ledger. It shows the same effect for Credit Note Voucher Entry.

Voucher Entry Step by Step

After creating the required Ledger and Stock Items as said above you need to follow the following steps. Select Accounting Vouchers Gateway of Tally screen.

1. Get the Gateway of Tally screen.
2. Select Accounting Vouchers under Transactions.
3. Select F8: Credit Note button in Button Area.
4. Required columns are mandatory to fill, they are Date, Party Name, Ledger Name, VAT/Tax Class, Stock Item, Quantity, Rate, and VAT Ledger.
5. Optional columns can be left without filling, they are Ref, and Narration.

This is the simple way of recording the VAT Sales Returns.