Journal Sale/Credit Notes Entry HSN wise
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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.
📂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.
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📉.
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.
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.
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.
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.
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✅.
📊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.
🧭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.
✔️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).
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📈.