Debit Note and Credit Note Voucher with Vat, Rate Difference

Dear Friends, you know very well about the Debit Note and Credit Note and Vat. Debit Note voucher is used specially for purchases return entry and you can also use this voucher to increase any debtor amount due the reason of rate difference while Credit note voucher is used specially for sales return entry and you can also use this voucher to decrease the creditor amount due the reason of rate difference. So, today we discuss how could you use Debit Note and Credit Note vouchers with Vat for purchases and sales return entries and also how could you increase or decrease any debtor or creditor amount due to rate difference.

This article will help you when you have to issue or receive vat credit note in your company. VAT credit note is generally used for the purpose of making an adjustment in relation to the VAT invoices.

How to Use Credit Note voucher with Vat (Debit Note and Credit Note):

Normally credit note is voucher is used when sales goods are returned from customer. This voucher is also used in extra charged amount by creditors. Press Ctrl + F8 for active credit note voucher. When sold goods are returned from the party against the VAT than normally following entry be passed.

Note: By default Sales Return entry made in invoice mode in the Credit Note voucher. To see same entry in voucher mode you have to press Ctrl + V, on this voucher.

Must Read: How to Use Debit Note Voucher in Tally

How to increase bill amount of debtor (Rate Difference):

You can also use this voucher when increased the creditor’s amount, same as debit note for increased debtor’s amount.

How to use Debit Note voucher with Vat (Rate Difference):

Debit note is also used to increase debtor’s amount. When you make sales to any debtor, but not send sales bill to debtor of compete amount. Then send debit note to him of remaining amount. E.g. If you sold goods of Rs. 10252.50 to Mr. Amit debtor with vat@1%, but you send bill of Rs. 10000 to him. In future, you remember you not send complete amount sales bill. Then send 252.50 debit notes to the Mr. Amit debtor.

Dr. Amit Debitor’s   a/c  252.50
Cr. Sales@1%      250.00
Cr. Output Vat @1%                 2.50
(Amount increased entry of debtors in voucher mode).

Must Read: Important Shortcut Keys of Tally

I hope, now you will be able to do entry easily in Debit Note and Credit Note voucher during purchases / sales return entries and rate difference. Give your important suggestions in the comment box regarding this post. Thanks.

7 response on “Debit Note and Credit Note Voucher with Vat, Rate Difference

  1. Ramesh

    Dear Sir,
    We have sold the goods to interstate @ 2% CST, for this we had purchased raw material in LOCAL @ 5% VAT. Now our CST customer issued DEBIT NOTE for PRICE REDUCE.

    In the above topic, we have to collect diff. amount from our raw material supplier by issuing DEBIT NOTE, for this DEBIT NOTE whether VAT Tax is applicable or not ? Please reply by return mail immediately.

    Thanks and regards
    Ramesh

    Reply
  2. atul gopinath

    The purchase has sent credit note.so we entered debit note in e-u pass return .But while enterering in e-vat 100 though there is a provision and entered debit note value-there is a difference in e-u pass & e-return vat 100.

    Reply
    1. Amit Sharma Post author

      Hi Ashutosh

      First of all thanks for writing.

      Debit Note voucher is used specially for purchases return entry while Credit note voucher is used specially for sales return entries apart of that these vouchers are also used for make rate difference entries.

      Debit Note voucher is specially used for all purchases return entries and you can also use this voucher to increase any debtor amount due the reason of rate difference while Credit note voucher is used specially for all sales return entry and you can also use this voucher to decrease the creditor amount due the reason of rate difference.

      I hope your problem is resolved…. keep in touch…

      Reply
  3. Liza

    i sold laptop with vat but later received debit note of the same including the vat amount now what should i do with vat?? while sending credit note??

    Reply
  4. Nawaz

    i sale goods to customer at low price and make the entry with same price, but after a few days i realize that the price was low, now i want to know that how i make the entry as debit note or credit note .

    Reply
  5. xyz

    In case i have purchased goods against H form and after that Some goods damaged then we will issue debit note to party whether Debit note send against H form or not??/ Is it reduce H form amount ?

    Reply

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