Journal Sale/Credit Notes Entry HSN wise
YouTube: Journal Credit Note Entry HSN Wise
🔍 Introduction
In accounting and taxation, credit notes play a vital role in:
🔄 Correcting invoices. 📦 Managing returns. 🏷️ Handling post-sale discounts.
Logic ERP simplifies this process by providing a dedicated Journal Credit Note feature with HSN (Harmonized System of Nomenclature) code integration🧾. Including the HSN code ensures that transactions are properly reported in GST returns✅, keeping your compliance and financial records accurate.
This tutorial will walk you through the entire process—from accessing the relevant module to posting and verifying the voucher.
🧭 Step-by-Step Guide
🛠️Step 1: Access the Accounting Module
📂From the Main Menu, go to the Accounts section.
🧾Click on A/C Vouchers option.
📑This section contains all the voucher types used in day-to-day accounting, including sales, purchases, receipts, payments, and journal entries.
🧾Step 2: Open the Journal Credit Note Screen
In the voucher list, select🧾Journal-Credit Note.
This voucher type is used to adjust or reverse previously recorded entries—typically used for sales returns🔁, pricing corrections🧮, or overcharged tax📉.
👥Step 3: Select the Party
Choose the party account (customer or vendor) against whom the credit note is to be issued.
This ensures that the credit note is reflected correctly in the party’s ledger🧾 and will show the updated balance.
🔢Step 4: Enter Bill Information
In the bill number field, enter the original invoice number🔖 that this credit note refers to.
🔍Referencing the original bill is crucial for audit trails and reconciliation.
💼Step 5: Fill in Account Details
Under the Account Details section:
📘Select the relevant ledger accounts (e.g., Sales Return, GST Output, Discount).
💰Enter the amounts and 🖊️narrations if needed.
📊Make sure the total debits and credits are balanced.
This step forms the core accounting impact of the journal entry.
🧮Step 6: Add HSN Code
Locate the field labeled HSN Code.
🔢Input the correct HSN or SAC (for services) based on the item or service returned or adjusted.
✅Entering a valid HSN ensures the credit note is automatically picked up in the GST return, under the right classification and tax rate.
💾Step 7: Save the Voucher
After verifying all details, click Save🖱️.
📥The system will now post the Journal Credit Note. You may receive a confirmation message once it is successfully recorded✅.
✅ Post-Entry Validation
📘Check in Party Ledger
📊Go to the Ledger Report.
🔎Select the party account to see the impact of the credit note.
This helps confirm that the party’s outstanding balance📉 has been reduced appropriately.
🧾Check in GST Returns
🧭In the Main Menu, Navigate to the Report/queries section.
🧾Expand the GST reports/ returns option under sale registers section, the click to open the GST Returns window.
📄Open the relevant return form (e.g., GSTR-1 for outward supplies).
🔍Locate the credit note under the CDNR or B2B Credit Notes section.
📊The credit note should appear automatically with the HSN-wise summary and impact the total tax liability.
📌 Notes and Best Practices
✔️Always ensure that HSN codes are mapped correctly in the item master for seamless reporting.
✔️Double-check all tax amounts to prevent filing errors in GST returns.
✔️Use descriptive narrations🖊️ in journal entries for better clarity and audit readiness.
✔️Credit Notes created via Journal Vouchers should match the tax structure of the original invoice (CGST/SGST or IGST).
🎯 Conclusion
Creating a Journal Credit Note in Logic ERP is a straightforward but powerful tool to maintain financial accuracy✅ and tax compliance✅. With proper HSN code integration, your business stays GST-compliant, and all entries flow smoothly into ledgers📘 and statutory reports🧾.
By following this detailed tutorial, you can confidently manage credit adjustments and maintain precise financial records📈.
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