How to Create Credit Note In Tally Prime

1
HOW TO CREATE CREDIT NOTE IN TALLY PRIME

• A Credit Note is issued by a seller when a buyer
  returns goods or when there is an adjustment in
  the invoice amount. This helps maintain accurate
  accounts and ensures compliance with GST
  regulations.

2
WHAT IS A CREDIT NOTE?

• A Credit Note is issued for sales returns,
  discounts, or corrections in invoices.
• It reduces the buyers outstanding amount in
  accounting.
• Example A business sells 10 items, but the
  customer returns 2. A Credit Note is issued for
  those 2 items.

3
STEP 1 ENABLE CREDIT NOTE FEATURE

• Open Tally Prime gt Go to Gateway of Tally.
• Click on F11 Features gt Accounting Features.
• Enable 'Use debit/credit notes' and set to Yes.
• If applicable, enable 'Use debit/credit notes for
  GST'.
• Press Ctrl A to save settings.

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STEP 2 CREATE A CREDIT NOTE

• Open Tally Prime gt Gateway of Tally gt Vouchers.
• Press Ctrl F8 to open the Credit Note voucher.
• Select the Buyers Name (Party Ledger).
• Choose the Sales Ledger and enter details of the
  returned goods.
• Enter Quantity, Rate, and Amount.
• Select Tax Ledgers (GST/VAT) if applicable.
• Add a Narration (reason for issuing the Credit
  Note).
• Press Enter to save the voucher.

5
STEP 3 VERIFY CREDIT NOTE ENTRY

• To check if the Credit Note is recorded
  correctly
• Go to Gateway of Tally gt Display gt Day Book.
• Apply a filter to show Credit Notes.
• Verify transaction details.

6
STEP 4 PRINT OR SHARE THE CREDIT NOTE

• To print or email the Credit Note
• Press Alt P to print the Credit Note.
• Press Alt M to send it via email.
• Ensure all details are correct before sharing.

7
IMPORTANCE OF CREDIT NOTES IN ACCOUNTING

• Helps in adjusting refunds and maintaining
  correct accounts.
• Ensures GST compliance by reversing sales
  transactions.
• Maintains buyer-seller transparency.
• Prevents errors in tax filing and financial
  statements.

8
CONCLUSION

• Creating a Credit Note in Tally Prime is
  essential for managing sales returns,
  adjustments, and compliance effectively. By
  following these steps, you can easily create and
  manage Credit Notes in your business.
• Learn more with our expert-led Tally course at
  www.excellentinfotech.in ??