Credit Notes And Debit Note In Tally

Credit Notes: If you set Yes to the option Use Debit/Credit Notes F11: Features, You can select this voucher upon clicking either F7: Journal or F8: Sales Buttons.
Basically Credit Note is entered to credit Party Account. Normally Credit Note is issued when a Buyer returns some goods that was sold to him (Sales Returns) or when you grant him credit due to rate difference or discount/rebate or due to some other reason you wish to credit Party Account.

Voucher Rules: Normally, a credit Note entry may be as under:

Particular                            Debit          Credit
Dr party A/c (Customer)                   (Amount)
Cr Sales Return(Sales)     (Amount)

Background Colour of Voucher Screen Green.

Entry Rules: The first entry must be a Credit involving any Debtor ( or Creditor Branch/Division). Cash or Bank Account. Secondary entry should be a Debit to a Ledger placed under Sales, Duties & Taxes and other revenge group, from 3rd entry onwards, You can Debit or Credit any account.

Debit Note: If you activate the option Use Debit/Credit notes for the company under features. You can select this Voucher upon clicking either F7: Journal and F9: Purchase buttons.
Basically Debit Note is entered to Debit Party account. Generally a Debit note is entered when you make purchase Return or have short billed a customer or your supplier have granted Credit to you on account of rate difference, discount etc.

Voucher Rules: Normally, a Debit Note entry may be under:

Particular                     Debit                   Credit
Dr Party A/c(Seller)  (Amount)
Cr Purchase Return
  (Purchase)                                            (Amount)

Entry Rules: The first entry must be debit involving any Creditor (or Debtor or Branch/Division). Cash or Bank Account, Second entry should be a credit to a Ledger placed under Purchase. Duties & Taxes and other revenue group from 3rd entry onwards, you can.