# Journal Sale/Credit Notes Entry HSN wise

YouTube: [Journal Credit Note Entry HSN Wise](https://youtu.be/QlCV9uuRjFU?si=EMy4pbpgymg2Vaaa)

### **🔍 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.

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### **🧭 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.*

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#### 🧾**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***��*.*

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#### 👥**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**.*

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#### 🔢**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**.*

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#### 💼**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.*

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#### 🧮**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.*

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#### 💾**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*✅*.*

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### **✅ 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.*

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#### 🧾**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**.*

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### **📌 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).

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### **🎯 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**📈.