by Debit Note: Issued by a buyer to a seller, it represents an increase in the purchase value. Debit Notes are issued when the buyer has received more goods or services than initially mentioned in the invoice or when additional taxes are payable.
Credit Note: Issued by a seller to a buyer, it represents a decrease in the purchase value. Credit Notes are issued when the seller has to refund the buyer for goods returned, discounts, or overcharged taxes.
Your business purchased goods worth Rs. 10,000 from a supplier. However, the supplier inadvertently charged GST at 12% instead of the correct rate of 5%. To rectify this, you issue a Debit Note.
1 Create a Debit Note voucher in Tally Prime:
- Select “Debit Note” from the voucher type list.
- Enter the supplier’s name, invoice number, and the reason for issuing the Debit Note.
- Enter the item details: Rs. 10,000 as the original invoice value and the incorrect GST amount of Rs. 1,200.
- Tally Prime will automatically calculate the corrected GST amount (Rs. 500).
2 Verify the voucher details and save the Debit Note
