Debit Note Incorrect Entry

Accounts 176 views 2 replies

Hello Everyone,

I had a query regarding Debit Note Adjustment. Kindly suggest me as to what can be done.

Case -

A Debit note of purchase has been entered as debit note of sales in Tally in month of Oct 23. (Note :- Due to some error, this debit note has not been uploaded in GSTR-1 in that or any subsequent months till date).

The accounts have been finalized by the auditor for FY 23-24 long back and even ITR and Audit Report have been filed for the said period.

Now since the debit note of purchase has been entered as debit note of sales, hence the effect in the creditor ledger is same. Hence no difference in the creditors ledger.

Now I cannot change the books since it has been finalized. I was thinking of the following entry :-

Date - 1/4/24

Sales @ 18% A/c                Dr. 100

(Stock Item - 0.3kg)

Output Cgst A/c.   Dr. 9

Output Sgst A/c.   Dr. 9

       To Purchase @ 18% A/c           100

       (Stock Item - 0.3kg)

       To Input Cgst A/c.                    9

       To Input Sgst A/c.                    9

 

Q1. Kindly guide me if this is correct. And what changes can I do in books?

Q2. Should I create a reversal for the debit note (sales) of 7th oct, 2023 and create a seperate debit note of purchase, both on 1st April, 2024?

Q3. Kindly guide me as to how will its effect been shown in GSTR9.

Replies (2)

If a debit note has been entered incorrectly, here are a few steps you can take to resolve the issue:

  1. Identify the Error
    Check what exactly is wrong — is it the amount, date, vendor, tax code, or reference number?

  2. Check System Policy
    Depending on your accounting software or ERP system, you may:

    • Be able to edit the debit note directly (if it hasn't been posted or approved yet).

    • Need to cancel or reverse it and create a new, correct entry.

  3. Create a Reversal/Credit Note (if needed)
    If the incorrect debit note has already affected the accounts, you may need to issue a credit note to offset it, then reissue the correct debit note.

  4. Document the Correction
    Always document why the correction was made for audit trail and internal records.

  5. Communicate with Stakeholders
    If the debit note was sent to a supplier or client, inform them promptly to avoid confusion or disputes.

If you can share more details (system used, type of error, stage of processing), I’d be happy to give more specific guidance.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register