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'VAT Accounting for Return of

Goods ( Debit / Credit


Note ) @ VAT Tally.ERP 9
In a business, customers may return goods due to numerous reasons
such defectiveness, expired or short delivered and so on. Similarly, even the defective
goods may also be returned to the vendors.
In this section, we will look into the entries of such transactions through Credit Notes and
Debit
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To enable Debit/Credit, set the following fields to Yes in F11: Features (Accounting
Features)
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Use Debit/Credit Notes
Use Invoice Mode for credit note
Use Invoice Mode for debit note

Sales Returns (Credit Note)


On 20-6-09, Somi Telicomm returned 1 No. Surya Lamp to Universal
Traders.

Enter the details of the transaction in


Credit Note
Go to Gateway of Tally > Accounting Vouchers > F8:
Credit Note.
Enter the details of the transaction as shown below in a credit note voucher.

In the Accounting Details screen of Surya Lamps, select Sales @


4% under Particulars.The Sales @ 4% will be selectedin the VAT/Tax Class.

Press Y or Enter to accept the screen.

Purchase Returns ( Debit Note )


Universal Traders returns 1 No. Surya Lamps to Sujan Ltd. from the earlier
purchases made from them.

Enter the details of the transaction in Debit Note voucher


Go to Gateway of Tally > Accounting Vouchers > F9: Debit Note.

The completed Debit Note is shown below :


In # the Accounting Details screen of Surya Lamps, select Purchases @
4% under Particu- lars. The Purchases @ 4%will be selected in the VAT/Tax Class.

# Press Y or Enter to accept the screen.

Display VAT Computation Report

Go to Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Computation.
The VAT Computation report appears as shown below:
The VAT Refundable is Rs. 880, press Enter on Input VAT @ 4% in the VAT
Computation report.

The VAT Classification Vouchers screen with Input VAT @ 4% appears as shown below:

Return to the VAT Computation report. Press Enter on Output VAT @ 4% in the
VAT Com- putation report.

The VAT Classification Vouchers screen with Output VAT @ 4% appears as shown below:
'Creating Purchase Invoice with
Multiple VAT Rates'
@ VAT Tally.ERP 9
Example :
On 5-6-09, Universal Traders purchased the following lamps from Sujan Ltd.

Item Quantity Rate VAT %


GE Lamp 15 Nos 100 12.5
Bajaj Lamp 5 Nos 150 4

Setup :
Click on Item Invoice button and change the following settings in F12: Configuration.
Use Common Ledger A/c for Item
allocation No.
Allow selection of VAT/Tax class
during entry No.

Enter the details of the transaction in the purchase invoice


Go to Gateway of Tally > Accounting Vouchers > F9: Purchase
In the Accounting Details screen of GE Lamps,
select Purchase 12.5% under Particu- lars. Purchase @12.5% will be
selected automatically in the VAT/Tax Class.
In the Accounting Details screen of Bajaj Lamps, select Purchase @
4% under Particu- lars. Purchase @ 4% will be selected automatically in
the VAT/Tax Class.
Select the ledgers Input VAT @ 12.5% and Input VAT @ 4%. The Input
VAT amount would be automatically calculated and displayed in the amount
columns.

The completed Purchase Invoice appears as shown :


Type the narration and press Y or Enter to accept the screen.