DEBIT NOTE AND CREDIT NOTE

These two voucher types should be activated from the accounting features of tally. All the entries recorded in the account books should be supported by some documentary evidence like invoices, bills, vouchers, receipts etc. for some entries there may not be any documentary proof. In such cases Debit Note and Credit Note should be used to record them. They are prepared in duplicating on pre printed forms. One copy is sent to the customer for his records and the other copy retained for our recorded.

Credit Note:- This voucher type is used to record following typed of transactions.

1. Sales returns settled in cash or book adjustments.
2. When discount or incentives are given to the customers.
3. To adjust any excess rates charged in previous invoices
4. To record any debit notes received from the suppliers

Debit Note:- This voucher type is used to record following types of transactions.

a.       To Record purchases returns

b.      When discount or incentives are received from the vendors.

c.       To adjust any excess rates charged in previous invoices.

d.      To record any credit notes received from the suppliers.