Credit Note Voucher – Cycle

Credit note is a debit of the creditor’s account and a credit on the purchase returns account. If the buyer has not yet issued payment for the original invoice, the credit note reduces the liability. It means that the liability of the money that they owe the seller is reduced.

It directly has a negative effect on the sellers accounting balance. The credit note informs clients about the credit provided in their account.

What is the difference between credit note and debit note?

The main difference between credit note and debit note is that credit notes record money that sellers owe to a client and debit notes record money that a client owes to sellers.

When purchase is return a debit note is issued, while a credit note is issued when there is a sales return.

How to record Credit Note in TallyPrime

Step 1 Click on vouchers

 

Step 2 Click on Other vouchers

 

Step 3 Click on Credit Note (ALT + F6)

If this voucher not showing in Tally Prime then you can press on show Inactive

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