How to Record Sales Return and GST Credit Note in TallyPrime

How to Record Sales Return and GST Credit Note in TallyPrime

When a customer returns goods after a sale, you can record the transaction in TallyPrime using a Credit Note. This reverses the applicable sales value and GST and increases stock for the returned quantity.

The exact GST treatment can depend on the transaction and current regulations, so verify the final return impact with your tax professional.

Version note: This guide is for TallyPrime. Menu names and options may vary slightly between releases.

Before you begin

• Original invoice number and date
• Customer ledger
• Returned item and quantity
• Original selling rate
• GST rate and tax ledgers
• Reason for the return
• Whether the original invoice is paid or still outstanding

Step 1: Open a Credit Note

1. Press Alt+G.
2. Select Create Voucher.
3. Press F10: Other Vouchers.
4. Select Credit Note.
5. Press Ctrl+H and choose Item Invoice mode, if required.

You can also open Credit Note from Gateway of Tally > Vouchers > F10: Other Vouchers.

Step 2: Select the customer

In Party A/c Name, select the customer who originally purchased the goods. Check customer name, GSTIN, state, place of supply and original invoice reference.

Step 3: Enter the original invoice details

Open the party or voucher details and enter the original invoice number and date wherever the fields are available. Using the correct original invoice reference helps maintain a clear audit trail and supports accurate GST reporting.

Step 4: Enter the returned item

Under Name of Item, select the returned stock item. Enter returned quantity, rate, applicable discount, sales ledger and GST ledgers. The returned quantity should increase the stock balance. If goods are damaged or unusable, keep them separately identified according to your business process.

Step 5: Select the correct bill reference

When TallyPrime displays the Bill-wise Details screen, select the appropriate reference type.

Use Agst Ref

Select Agst Ref when the customer has not yet paid the original invoice. The Credit Note can then be adjusted against the outstanding invoice.

Use New Ref

Select New Ref when the customer has already paid the original invoice. The Credit Note can be adjusted against a future invoice or payment.

If required, press F12: Configure and set the option to use default bill-wise details to No, so that you can select the reference manually.

Step 6: Select the reason for the return

In the GST details, choose the appropriate reason, such as Sales return, Post-sale discount or another applicable adjustment. Do not select a reason only to make the report match.

Step 7: Save the Credit Note

Enter narration if required and press Ctrl+A to save the voucher. Review taxable value, GST amount, total credit value and stock quantity.

Step 8: Verify the accounting and GST impact

• Customer outstanding balance
• Stock Summary
• Sales ledger
• CGST, SGST or IGST ledgers
• Credit Note Register
• Relevant GST reports

Sales returns are reflected through Credit Notes and can be reviewed in the Credit Note Register.

Common mistakes

• Original invoice is missing: Check invoice number and date before saving.
• Credit Note is not adjusted: Review whether Agst Ref or New Ref was selected.
• GST amount is incorrect: Check party state, place of supply, item classification, tax rate and GST ledgers.
• Stock does not increase: Confirm Item Invoice mode and correct item/quantity.
• Return does not appear as expected in GST reports: Review GST details and nature of transaction; do not alter figures only to force a result.

Final checklist

• Returned quantity is correct.
• Original invoice is referenced.
• Customer balance is correct.
• GST values are correct.
• Credit Note is included in the relevant report.
• Customer has received the Credit Note.
• Backup of company data is available.

Related TallyPrime guides

• How to Reconcile GSTR-2B in TallyPrime
• How to Generate an e-Invoice in TallyPrime
• TallyPrime Troubleshooting
• How to Backup and Restore Company Data in TallyPrime

Conclusion

Recording a sales return through a GST Credit Note keeps stock, customer balances, sales values and tax records aligned. Always test the entry in a backup company first and verify the resulting GST reports before filing.

 

How to Create a Custom Button in TallyPrime Using TDL

How to Create a Custom Button in TallyPrime Using TDL

TallyPrime can be customized with TDL to add buttons, fields, reports and workflow shortcuts. In this example, we add a custom button to the Gateway of Tally.

Version note: Test this code in TallyPrime Developer using a release-compatible TDL environment. Always keep a backup and test with a backup company.

TDL code

;; =========================================================
;; OTS Custom Gateway Button
;; Test in TallyPrime Developer
;; =========================================================

[#Form: Gateway of Tally]
    Add    : Button    : OTS Help Button

[Button: OTS Help Button]
    Title  : "OTS Help"
    Key    : Alt + H
    Action : Display    : OTS Help Report

[Report: OTS Help Report]
    Form   : OTS Help Form
    Title  : "OTS TDL Help"

[Form: OTS Help Form]
    Parts  : OTS Help Part

[Part: OTS Help Part]
    Lines  : OTS Help Line1, OTS Help Line2, OTS Help Line3

[Line: OTS Help Line1]
    Fields : OTS Help Field1

[Line: OTS Help Line2]
    Fields : OTS Help Field2

[Line: OTS Help Line3]
    Fields : OTS Help Field3

[Field: OTS Help Field1]
    Use    : Name Field
    Set As : "Welcome to the custom TDL help screen."
    Width  : 60

[Field: OTS Help Field2]
    Use    : Name Field
    Set As : "Use this area for instructions or support information."
    Width  : 60

[Field: OTS Help Field3]
    Use    : Name Field
    Set As : "Press Esc to return to the Gateway of Tally."
    Width  : 60

How the code works

• The Gateway of Tally form is extended with a new button.
• Alt + H opens the custom report.
• The report uses a separate form, part, lines and fields.
• Unique names beginning with OTS help prevent conflicts with other TDL files.

How to load the TDL

1. Open TallyPrime Developer.
2. Create a new TDL file.
3. Paste the complete code.
4. Compile or load the file in a test company.
5. Open the Gateway of Tally.
6. Select OTS Help or press Alt + H.
7. Press Esc to return.

Safe testing checklist

Test the button after opening different companies and after loading other custom TDL files. Confirm that the shortcut does not replace an existing important key. Keep the default TallyPrime screens available, and do not test custom code directly on live company data.

Troubleshooting

• Button does not appear: Confirm that the TDL loaded successfully and that the active form is Gateway of Tally.
• Shortcut does not work: Check whether another TDL or TallyPrime function already uses Alt + H.
• Report opens blank: Verify the report, form, part, line and field names.
• Errors appear after an upgrade: Compare the code with the TDL definitions supported by your TallyPrime release.

Conclusion

A small custom button is a useful starting point for TDL customization. After testing this example, you can connect the button to a custom report, dashboard, calculator or business workflow. Keep each customization in a separate file and maintain a tested backup version.