Supplier Refund - Full Payment Returned

You may find yourself in a situation where you are issued a refund from a supplier and you need to record this in Tally.  To do this you need to create a credit note.

Creating the Credit Note

The first step to creating a credit note is to go to original purchase you need to refund.  This can be found in the Purchases area.  Once you are here you will need to press copy at the bottom of the receipt, then select copy to new receipt.  You should now have an exact copy of the receipt linked to the same supplier.  To turn this into a credit note you need to press edit on each line item of the receipt.  Here you need to set the Rate to a negative amount by putting a ‘-‘ in front of the figure, then press Update.  Your credit note is now created.

Showing the money back in your bank account

All that is left to do is show the money back into your account like it shows on your bank statement.  You need to record a payment in the Payment Details section as a negative amount for the account the money was refunded to.  Then hit Add Payment. This has now been accounted for correctly.

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