Debit Note | how to account it in Tally.erp 9 :- Debit Note.

"Debite Note"

Debit Note As the name suggest an instrument or a  note  which is related with DEBIT. A Credit note is an opposite meaning to a Debit Note. In accounts people have to deal with Debit and Credit note often.

Debit Note| An in-depth understanding

A person or business firm who issue the Debit Note to a party, is the issuer of the debit note.
it suggested that the issuer had debited the account of the recipient of the debit advice.A debit advice can be issued for variety of reasons. It can be issued to a supplier as well as a customer also
there are cases when the situation to create a debit voucher arise.

Debit Note | Some examples

your company had purchased some laptops say for USD $2600
now, there are some damaged materials you received with the system worth of USD $25 and you want to return those materials to supplier and opted not to replace the same as you have planned to buy them from some another vendor.
Here, you need to raise a debit note in favour of your system vendor
you have to debit the vendor’s accounts and have to credit the material purchase account (e.g. the one which was debited while purchasing the system worth of USD $2600.00.
A debit note issued by the issuer becomes a credit note for the recipient company/person where he needs to credit the account of the issuer of the debit note.
Some examples of Debit note

  • Let’s assume your customer had given a cheque which was bounced and bank imposed a penalty on you. Now you can recover that penalty from your customer by issuing a debit advice or memo to him
  • Your suppliers had supplied you less qty than the billed qty.
  • Your supplier had charged excess rate than the agreed rate. your supplied an inferior quality items.
  • You had incurred some extra expenses on behalf of your customer or supplier which to be recover from them say insurance of supply of Goods etc.

Accounting Treatment of Debit/credit not depends on the nature of transactions. Generally  the account for which a an instrument for debit/credit is prepared will be debited or credited and the person on whose favour the instrument is raised will be debited for the Debit note and credited for the credit note.

 

Debit Note in Tally.erp 9

in Tally.erp 9 to enable Debit and credit note go to F11 than F1 accounting features
under invoice set yes to use Debit/Credit note to yes

 

"Debite Note"

 

If you have to use a debit / Credit note for purchase or sales return you than you have to use invoice mode for debit /credit note because it will capture the vat/excise duty details and will reflect in the vat/excise records

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About the author /


Mahendra is founder and CEO of the I Vision Infotech, Authorised Tally Sales and Service Partner and helping Tally users to learn Tally and accounting free through this site

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6 Comments

  1. jeenu ponnappan

    I working in Manufacturing Co. And our customer of (other state) to whom we sell spares part, they have not given C form during the Financial year, and sales tax officer charged penalty 100%. to our company of the amount contain in C form. What will be entry to raise Debit note to recover the penalty amount as well as the amount as per C Form from our customer.

  2. RAJU SINGH BHANDARI

    how to chq print from tally
    pls sent to us the setting or help to me
    or in excel chq printing setingggg

  3. sarojini

    I run a travel agency issuing air tickets and selling tour packages. I want to create bill / invoice and also recipt for the business i do. I have tally 9.0 installed in my computer. I have created the company but unable to proceed after that. kindly insruct me how to make a bill and recipt .

    thanks

    • ikrar

      Dr. – Party Name
      Cr.- Sale
      Cr. – Vat(If applicable)

      If you dont have party name creat a led. by name in sundry cre.

  4. Ramesh

    Sir pls tell me how we use against option in debit note example we want to return whole bill as it & when we debit note option yes then before a option is against this bill ple tell me

  5. satender chauhan

    Sir pls tell me how we use against option in debit note example we want to return whole bill as it & when we debit note option yes then before a option is against this bill ple tell me

    Reply

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