How to Record Purchase Returns in TallyPrime: 5 Easy Steps

Here’s how to record purchase returns under GST in TallyPrime, considering both local and interstate scenarios:

1. Choose the Right Voucher:

1. Local Purchase Return:

Use F9: Purchase voucher and select Debit Note as the voucher type.

2. Interstate Purchase Return:

Use F10: Other Vouchers > Interstate Purchase – Works Contract and select Debit Note as the voucher type.

2. Enter Basic Information:

Provide the date, original invoice number and date of the purchase you’re returning, and select the supplier’s ledger account.

3. Add Return Items:

• Select the same purchase ledgers used for the original purchase.
• Enter the quantities and rates of the returned items. Ensure their values match the original invoice.

4. Set GST Information:

1. Local Purchase Return:

• Enable Enable Tax Details.
• Select the original CGST and SGST/UTGST rates used in the purchase invoice.
• TallyPrime will automatically calculate the negative tax amounts for the return.

2. Interstate Purchase Return:

• Enable Enable Tax Details.
• Select the original IGST rate used in the purchase invoice.
• TallyPrime will automatically calculate the negative tax amount for the return.

5. Complete the Voucher:

• Select the Payment Out ledger if you’ve received a refund from the supplier.
• For outstanding balances, choose the relevant Outstanding Liability Ledger.
• Press Enter to save the voucher.

Additional Notes while Recording Purchase Returns in TallyPrime:

• Ensure the purchase ledgers have the correct Taxability settings (Taxable, Exempt, Nil Rated) configured in the ledger master.
• If the return doesn’t involve a full refund, adjust the quantities and values accordingly.
• Consider using the Narration field to mention details like reason for return or any specific agreements with the supplier.
• Maintain proper documentation for purchase returns, including original invoices, debit notes, and communication with suppliers.

Important Tips for Purchase Returns in TallyPrime:

• Consult a qualified accountant for specific guidance on recording purchase returns based on your business nature and applicable GST regulations.
• Consider the timeliness of return and potential impact on input tax credit (ITC) claims.
• Regularly reconcile your GST return data with TallyPrime records for accuracy.

By following these steps and incorporating the additional notes, you can effectively record purchase returns under GST in TallyPrime, ensuring proper tax treatment, accurate record-keeping, and compliance with regulations.

Remember, seeking professional advice can help navigate specific scenarios and optimize your GST management.