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Creating Goods Return ledgers with VAT configuration in Tally.ERP 9


Creating goods return ledgers (Sales Return and Purchases Return) in Tally ERP 9 Accounting Software is as similar as creating the Sales and Purchase Ledgers for VAT computation. Either, you can create your own set of separate ledgers for recording the Goods Returns in the Books of Accounts or you can use the existing Trading Ledgers to record the return goods.

How to create Sales Return with VAT Ledger in Tally ERP 9
Sales Return @ 5% VAT Ledger Creation in Tally ERP 9

Record Goods Returns without creating Sales Return Purchase Return Ledgers in Tally

In case if you want to use the existing Trading Ledgers without creating separate ledgers for Goods Return just choose the

  1. Sales with VATLedger and Output VAT Ledger while recording a Credit Note Voucher.
  2. And similarly choose the Purchases with VAT ledger and Input VAT ledger while recording a Debit Note Voucher.

So, you no need to create separate ledgers for recording the Goods Returns. But, if you want to distinguish the Returns Goods from regular Sales and Purchases then you need to create the corresponding Goods Return ledgers with VAT configuration. In that case go ahead with the following guide.

How to Create Sales Return Ledger in Tally

So, while creating the Sales Return ledger with VAT follow the same procedure that we did while creating the Sales with VAT but give a different name like Sales Returns @ 5% VAT.

  1. Name the Ledger as Sales Return @ 5% VAT
  2. Choose Sales Accounts group from the List of Groups for Under field.
  3. If the Accounts with Inventory is activated.
    • Under Statutory Information set Yes for Used for Assessable Value Calculation.
    • Select VAT from the list of Duty/Tax Type for Apportion for option.
    • And select Based on Value for Method of Apportion option and save the screen.
  4. If the method of accounting is Accounts Only
    • And select Sales @ 5% from the list of VAT/Tax Class and save the screen.

Now we have created the ledger for recording the Assessable Value and for VAT amount we can use the existing Output VAT ledger.

How to Create Purchase Return Ledger in Tally

How to create Purchase Return with VAT Ledger in Tally ERP 9
Purchase Return @ 5% VAT Ledger Creation in Tally ERP 9

For recording the Purchase Return ledger similarly follow the instruction of Purchase with VAT ledger creation but give a different name to the Return ledger like Purchase Returns @ 5% VAT.

  1. Name the Ledger as Purchase Return @ 5% VAT.
  2. Choose Purchase Accounts group from the List of Groups for Under field.
  3. If the Accounts with Inventory is activated.
    • Under Statutory Information set Yes for Used for Assessable Value Calculation.
    • Select VAT from the list of Duty/Tax Type for Apportion for option.
    • And select Based on Value for Method of Apportion option and save the screen.
  4. If the method of accounting is Accounts Only
    • And select Purchases @ 5% from the list of VAT/Tax Class and save the screen.

Now we have created the ledger for recording the Assessable Value and for VAT amount we can use the existing Input VAT ledger.

We have seen the Goods Returns Ledgers for only VAT @ 5% for creating Goods Returns Ledgers for other VAT types just select the appropriate VAT/Tax Class at the time of creating ledger.

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is the founder of AccountsGuy.Net with the view of providing Accounting and Technical support using Accounting package Tally ERP 9, and Office Tools to the people. I write articles on Accounts, Blogging, Computer Operating, and technical issues and some of my experiences on them for students, beginners. Follow our Networks or sing-up for the email newsletter below for your daily dose of Tips and Tricks.
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