✅ Purchase Retrun | Debit Notes

 A Debit Note is used to record purchase return when goods are returned to the supplier. It reduces the supplier balance and reverses Input GST.

When you purchase goods, sometimes:

• You return full or partial goods to the supplier

• The supplier later increases the item price

• Transportation or other charges are added later

• There is rate difference due to market fluctuation

In such cases, TallyPrime allows you to record:

• Debit Note (Purchase Return)

• Credit Note (Purchase Value Increase / Adjustment)

✅  A Debit Note is used when:

• Goods are returned to supplier

• Quantity is short or damaged

• Quality is poor

• Excess supply received

• Wrong item supplied

👉 Purchase Return = Debit Note

✅  AFTER PAYMENT of the Purchase Bill

Record Purchase Returns  BEFORE PAYMENT of the Purchase Bill

While receiving a supply, you might notice that the supplier has sent some defective items or let us say you are not satisfied with the quality of the items received. In such cases, TallyPrime gives you the option to record a debit note against the purchase and reduce expenses/liabilities from your books.

1. Open the Debit Note voucher.
   1. Press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Debit Note and press Enter.
      Alternatively, Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Debit Note and press Enter.
2. In Party A/c name, select the party from whom the original purchase was made and press Enter. The Dispatch Details screen will appear.
3. Under Original Invoice Details enter the Original Invoice No. and Date of the original purchase transaction against which you are recording a purchase return.
   The following is an example of a Purchase voucher with Supplier Invoice No.: P-1 and Date: 1-Dec-2.
   
   As per the Purchase voucher, you can enter the Original Invoice Details in the Debit Note as shown in the image below:
   
4. Enter stock item details for debit note.
   1. Name of Stock Item – Select the stock item.
   2. Specify Quantity and Rate.
      For example – Shown below is a Debit Note for 10 Supreme 2 Lts. Wet Grinders with a value of Rs. 65,000/- recorded on 2-Dec-22.
      

1. In the Bill-wise Details screen:
   1. Select Agst Ref as the Type of Ref and select the purchase invoice for which the value is being decreased.
   2. Enter the amount to the extent to which purchase value is decreased, including tax under Amount and Cr under Dr/Cr.
      

1. As always, press Ctrl+A to save.

Debit Note Entry AFTER PAYMENT of Purchase Bill 

Important Concept (After Payment Case):
If the purchase bill was already paid, then while recording Debit Note:

• The amount becomes receivable from supplier.
• Later, supplier may refund by Bank/Cash OR adjust in next purchase.

🧮 Calculation

📘 Steps to Record Debit Note (Item Invoice Mode)

1. Open Debit Note Voucher
   • Create Voucher → Press Ctrl + F9 (Debit Note)
   • Press F2 to change date → 01.04.2024
   • Press Ctrl + H → Select Item Invoice Mode
   • Enter Supplier Invoice No. & Date
2. Provide Supplier Details
   • Party A/c Name → Select Lenovo Ltd Bangalore
   • Enter original purchase reference details
   • Select Purchase @18% ledger
3. Enter Stock Item Details
   • Name of Stock Item → Mouse
   • Quantity → 5
   • Rate → ₹410
   • Select CGST @9% and SGST @9%
   • GST will auto calculate
4. Enter narration: Being 5 mouse returned due to damage after payment
5. Press Ctrl + A to Save

📌 Accounting Effect

• Supplier Account → Debit (Amount Receivable)
• Purchase Return → Credit
• Input CGST & SGST → Reversed

F6 – Receipt Voucher (Refund Received by Bank or Cash)

📘 Steps to Record Receipt Voucher

1. Open Receipt Voucher
   • Gateway of Tally → Vouchers
   • Press F6 (Receipt)
   • Press F2 for date change
   • Press Ctrl + H → Select Single Entry Mode
2. Select Bank or Cash Account
   • Account → Select Canara Bank
   • Under Particulars → Select Lenovo Ltd Bangalore
   • Enter Amount → ₹2,419
   • Select Against Ref → Choose pending Debit Note reference
3. Bank Details
   • Transaction Type → Cheque (Default)
   • Enter cheque number if required
   • Type narration
4. Press Ctrl + A to Save

⌨ Shortcut Keys Table

✅ Key Points Included

• Used when purchase bill already paid
• Creates receivable from supplier
• GST automatically reversed
• Refund recorded using Receipt Voucher
• Can also adjust against future purchases

Account for Increase in Purchase Value

you’re dealing with fluctuating costs and need to adjust your accounts. TallyPrime’s got a handy feature for this – you can create a credit note against the purchase to increase expenses and update your books accordingly. Want to know more about how to do this in TallyPrime?

1. Open the Credit Note voucher.
   1. Press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Credit Note and press Enter.
      Alternatively, Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Credit Note and press Enter.
2. In Party A/c name, select the party from whom the original purchase was made and press Enter. The Dispatch Details screen will appear.
3. Under Original Invoice Details enter the Original Invoice No. and Date of the original purchase transaction against which you are recording a purchase return.
   The following is an example of a Purchase voucher with Supplier Invoice No.: P-1 and Date: 1-Dec-2.
   
   As per the Purchase voucher, you can enter the Original Invoice Details in the Debit Note as shown in the image below:
   
4. Enter stock item details for Credit note.
   1. Name of Stock Item – Select the stock item.
   2. Specify Quantity and Rate.
      For example – Shown below is a Credit Note for 30 Supreme 2 Lts. Wet Grinders with a value of Rs. 2,10,000/- recorded on 2-Dec-22.
      
5. As always, press Ctrl+A to save.

Account for Decrease in Purchase Value

You can record a debit note to decrease the purchase value of goods. 

1. Press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Debit Note > and press Enter.
   Alternatively, Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Debit Note > and press Enter.
2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this case).
3. Select the Party A/c name and provide the buyer details. You can also enter the Original Invoice No. and Date, against which this transaction is being recorded.
4. In the Ledger account field, press Enter on Show More > select the purchase ledger to allocate the stock items.
5. Provide the stock item details, and select the tax ledgers.
6. In the Bill-wise Details screen:
   1. Select Agst Ref as the Type of Ref and select the purchase invoice for which the value is being decreased.
   2. Enter the amount to the extent to which purchase value is decreased, including tax under Amount and Cr under Dr/Cr.
      
7. Press Enter to return to voucher screen.
   
8. Accept the screen. As always, you can press Ctrl+A to save.