What is Purchase Return and Sales Returns in Tally

 

Purchase Return

When goods are purchased from a supplier to be sold but the goods purchased are given back to its supplier.

 

Many Reasons Such As.

 

1.    Goods are not as per specification.

2.    Goods in damaged condition.

3.    The buyer acquired the wrong goods.

4.    The seller sent the wrong goods.

5.    The goods have proven to be inadequate in some way.

6.    They are also known as return outward.

 

Under such conditions, the buyer return the goods to its supplier and raised a Debit Note.

 

Debit Note

 

A debit note is also known as a debit memo. It is a document that is issued from a buyer to a seller indicating a request to return funds as a result of incorrect or damaged goods or services or cancellation of purchase. A debit note is issued before a credit note can be issued by the supplier and acts as a buyer’s formal request to issue a credit note.

 

 

Sales Returns

 

Sales returns is just the opposite of purchase returns in purchase returns we give back goods purchase earlier.

 

In sales return the goods which we sold to our customer are send back to us.

 

Many Reasons Such As

 

1.    Goods are not as per specification

2.    Goods in damaged condition

3.    The buyer acquired the wrong goods

4.    The seller sent the wrong goods

5.    The goods have proven to be inadequate in some way.

6.    A sales return is merchandise sent back by a buyer to the seller, usually for one of the following reasons: Excess quantity shipped.

 

For sale return, we make credit note

 

Credit Note

 

A credit note (or credit memo) is a document issued by a seller to a buyer to reduce or cancel the amount owed on a previously issued invoice. It acts as a formal adjustment for returned goods, damaged items, overcharges, or cancelled services. It decreases the buyer's accounts payable and the seller's accounts receivable.