Learn how to use Rejection In and Rejection Out vouchers in TallyPrime with practical examples. Understand how to record customer-rejected goods, return defective products to suppliers, manage inventory, and maintain accurate stock records.
Rejection In and Rejection Out Vouchers in TallyPrime: Complete Guide
In business, not every product received from a supplier or sold to a customer meets the expected quality standards. Sometimes, goods arrive damaged, defective, expired, or different from what was ordered. Similarly, customers may return products because of manufacturing defects, incorrect items, or quality issues.
To manage these situations properly, TallyPrime provides two useful inventory vouchers: Rejection In and Rejection Out.
These vouchers help businesses record rejected goods without treating every rejection as a normal sales return or purchase return. They also make it easier to track damaged stock, maintain accurate inventory records, and manage goods moving between the business and its suppliers or customers.
In this guide, you will learn what Rejection In and Rejection Out vouchers mean, how they work, when to use them, and how to record them in TallyPrime with practical examples.
What Is a Rejection In Voucher in TallyPrime?
A Rejection In voucher is used when goods sold or delivered to a customer are returned to your business because they do not meet the required quality standards.
For example, imagine you run an electronics wholesale business and sell 50 computer keyboards to a retailer. After receiving the goods, the retailer discovers that 5 keyboards are defective and sends them back.
Instead of treating these items as regular sales returns immediately, you can record the returned defective goods using a Rejection In voucher.
This voucher helps you record the physical receipt of rejected goods and update your inventory accordingly.
Common situations for using Rejection In:
A customer returns damaged products.
Goods have manufacturing defects.
Products supplied do not match the customer's order.
Customers reject goods due to poor quality.
Delivered items have incorrect specifications.
Example:
Suppose you sell 100 LED bulbs to a customer, but 10 bulbs are found defective.
Particulars | Quantity |
|---|---|
Total bulbs sold | 100 |
Defective bulbs returned | 10 |
Accepted by customer | 90 |
You can record the 10 returned bulbs through a Rejection In voucher in TallyPrime.
This allows you to maintain a proper record of the goods physically received back from the customer.
What Is a Rejection Out Voucher in TallyPrime?
A Rejection Out voucher is used when your business returns goods received from a supplier because they are damaged, defective, expired, or do not meet the agreed specifications.
For example, suppose you purchase 200 mobile phone chargers from a supplier. After inspecting the delivery, you discover that 15 chargers are damaged.
You can use a Rejection Out voucher to record the 15 defective chargers being sent back to the supplier.
This helps maintain accurate stock records and provides documentation for the rejected goods.
Common situations for using Rejection Out:
Purchased goods arrive damaged.
Products fail quality inspection.
The supplier delivers incorrect items.
Goods are expired or unsuitable for sale.
Items do not match the purchase order specifications.
Example:
Your business purchases 500 packets of packaged food from a supplier. During inspection, you find that 20 packets are damaged.
Particulars | Quantity |
|---|---|
Total quantity purchased | 500 |
Damaged quantity | 20 |
Accepted quantity | 480 |
You can record the 20 damaged packets using a Rejection Out voucher.
This creates a record of the rejected stock sent back to the supplier.
Difference Between Rejection In and Rejection Out
Although both vouchers are used to manage rejected goods, their purposes are different.
Basis | Rejection In | Rejection Out |
|---|---|---|
Meaning | Goods received back from customers | Goods returned to suppliers |
Direction | Goods come into the business | Goods go out of the business |
Related transaction | Customer rejection | Supplier rejection |
Inventory impact | Rejected goods are received | Rejected goods are dispatched |
Common reason | Defective sales items | Defective purchased items |
Typical example | Customer returns damaged goods | Business returns damaged purchases |
Easy way to remember:
Rejection In = Goods come IN from customers.
Rejection Out = Goods go OUT to suppliers.
Rejection In vs Sales Return and Rejection Out vs Purchase Return
One common confusion among TallyPrime users is the difference between rejection vouchers and regular return vouchers.
Although they may appear similar, their purposes are not exactly the same.
Voucher | Purpose |
|---|---|
Rejection In | Records goods rejected and returned by customers |
Sales Return | Records goods returned against a sales transaction |
Rejection Out | Records goods rejected and returned to suppliers |
Purchase Return | Records goods returned against a purchase transaction |
For example, if a customer returns 5 defective printers, you may record their physical receipt using Rejection In.
If you also need to reduce the customer's outstanding balance or account for the sales return, the corresponding financial transaction must be recorded appropriately.
Similarly, Rejection Out records the movement of rejected goods to a supplier. A corresponding purchase return or debit note may be needed to adjust the supplier's account.
Important: Rejection vouchers and financial return entries should be handled according to your business process and accounting requirements. Do not assume that recording a rejection voucher automatically adjusts the party's outstanding balance.
How to Enable Rejection In and Rejection Out Vouchers in TallyPrime
Before using these vouchers, check whether the required inventory features are enabled in your company.
Follow these steps:
Open your company in TallyPrime.
Press F11 (Features).
Check the inventory-related configuration options.
Enable the relevant inventory features if required.
Save the configuration.
The exact options available may vary depending on your TallyPrime release and company configuration.
Once the required features are available, you can access the rejection vouchers from the inventory voucher section.
How to Create a Rejection In Voucher in TallyPrime
Let's understand how to record goods returned by a customer using a practical example.
Suppose your business sells 50 office chairs to ABC Traders. The customer finds that 5 chairs have damaged wheels and returns them.
You need to record these 5 chairs using a Rejection In voucher.
Follow these steps:
Open TallyPrime and select your company.
Go to Vouchers.
Press F10 (Other Vouchers) or open the relevant voucher selection menu.
Select Rejections In.
Enter the voucher date.
Select the customer or party ledger, where applicable.
Select the stock item, such as Office Chair.
Enter the rejected quantity as 5.
Select the appropriate godown or location, if applicable.
Enter the required details in the narration field.
Verify the voucher information.
Press Ctrl + A to save the voucher.
Sample narration:
"Received 5 damaged office chairs returned by ABC Traders due to defective wheels."
After saving the voucher, the rejected goods are recorded in your inventory records.
How to Create a Rejection Out Voucher in TallyPrime
Now let's look at the process of returning defective goods to a supplier.
Suppose you purchase 100 ceiling fans from XYZ Electricals. During inspection, you discover that 8 fans have damaged motors.
You need to send these 8 fans back to the supplier.
Follow these steps:
Open your company in TallyPrime.
Navigate to Vouchers.
Press F10 (Other Vouchers) or open the voucher selection menu.
Select Rejections Out.
Enter the voucher date.
Select the supplier ledger, where applicable.
Choose the stock item, such as Ceiling Fan.
Enter the rejected quantity as 8.
Select the relevant godown or location, if required.
Add the reason for rejection in the narration field.
Check the item and quantity details.
Press Ctrl + A to save the voucher.
Sample narration:
"Returned 8 defective ceiling fans to XYZ Electricals due to damaged motors."
Once saved, the rejected goods are recorded as dispatched from your business.
Practical Business Example: How Both Vouchers Work Together
Let's understand both vouchers through a single business scenario.
Imagine you operate a wholesale electronics shop.
During the month, you complete the following transactions:
Purchase 200 Bluetooth speakers from a supplier.
Discover that 10 speakers are defective.
Return those 10 speakers to the supplier.
Sell 100 speakers to a retailer.
The retailer returns 4 defective speakers.
You can record these transactions using the following vouchers:
Business Transaction | Voucher Used | Quantity |
|---|---|---|
Goods purchased | Purchase Voucher | 200 |
Defective goods returned to supplier | Rejection Out | 10 |
Goods sold to retailer | Sales Voucher | 100 |
Defective goods received from retailer | Rejection In | 4 |
This approach helps you maintain a clear record of goods received, sold, rejected, and returned.
It also makes stock verification easier because you can identify where rejected items entered or left your business.
How to Check Rejection In and Rejection Out Reports
Recording rejection vouchers is only part of the process. You should also review them regularly to understand how much stock is being rejected.
In TallyPrime, you can use the relevant inventory reports and voucher registers to review recorded transactions.
Follow these general steps:
Open the Gateway of Tally.
Navigate to Display More Reports or the relevant inventory reporting section.
Open the inventory voucher register or the appropriate stock report.
Apply the required period and voucher filters.
Review Rejections In and Rejections Out entries.
Check item quantities and transaction details.
Depending on your TallyPrime version and configuration, the report navigation and available filters may differ.
Regularly checking these records can help you identify frequently rejected products and suppliers with repeated quality problems.
Important Things to Remember When Using Rejection Vouchers
To maintain accurate inventory records, keep the following points in mind:
Inspect goods before recording rejection: Always verify the product condition and quantity before creating a voucher.
Select the correct stock item: Choosing the wrong item can create differences in your stock records.
Enter accurate quantities: Record only the quantity actually received or dispatched.
Maintain separate records for damaged goods: If possible, use a separate godown or stock location for defective products awaiting inspection or disposal.
Add meaningful narration: Mention the supplier or customer, product condition, and reason for rejection.
Check the accounting adjustment: Rejection vouchers record inventory movement. Make the appropriate purchase return, sales return, debit note, or credit note entry when a financial adjustment is required.
Review rejection trends: Frequent rejection of the same item may indicate a supplier quality problem or an issue with your product handling process.
Benefits of Using Rejection In and Rejection Out Vouchers
Using these vouchers properly can improve inventory management and reduce confusion in daily business operations.
Some important benefits include:
Better stock accuracy: Maintain records of rejected goods separately from normal stock movements.
Improved quality control: Identify defective products and recurring quality issues.
Supplier management: Track suppliers who frequently deliver damaged or incorrect goods.
Customer satisfaction: Maintain proper records of products rejected by customers.
Easy stock verification: Compare physical inventory with recorded stock movements.
Better business documentation: Keep a record of rejected quantities and reasons.
For businesses dealing with electronics, clothing, machinery, food products, and wholesale goods, these vouchers can be particularly useful.
Common Mistakes to Avoid
Even though rejection vouchers are straightforward, small mistakes can create inventory differences.
Avoid these common problems:
Recording a supplier return as Rejection In instead of Rejection Out.
Recording customer returns as Rejection Out.
Entering an incorrect rejected quantity.
Forgetting to select the correct stock item.
Not recording the reason for rejection.
Assuming that a rejection voucher automatically adjusts the supplier's or customer's outstanding balance.
Ignoring defective stock during physical verification.
A simple inspection and verification process can prevent most of these issues.
Conclusion
Rejection In and Rejection Out vouchers in TallyPrime help businesses manage rejected goods more systematically.
Use Rejection In when customers send rejected goods back to your business. Use Rejection Out when your business returns defective or unsuitable goods to suppliers.
Both vouchers help maintain better inventory records, track product quality issues, and improve stock management.
However, remember that inventory rejection and financial return adjustments are separate accounting considerations. Recording the correct voucher and making the necessary accounting entries will help keep your business records accurate and reliable.
Frequently Asked Questions (FAQs)
What is Rejection In in TallyPrime?
Rejection In is an inventory voucher used to record rejected goods received back from customers.
What is Rejection Out in TallyPrime?
Rejection Out is used to record defective or rejected goods returned to suppliers.
Does Rejection In reduce sales?
Not automatically. A separate sales return or appropriate accounting adjustment may be required.
Does Rejection Out reduce the supplier balance?
Not automatically. You may need to record a purchase return or debit note for the financial adjustment.
What is the main difference between Rejection In and Rejection Out?
Rejection In records goods coming back from customers, while Rejection Out records goods being sent back to suppliers.
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