Mushak 6.7: the credit note for a reduced supply value
When the value of a supply falls after the tax invoice went out, Mushak 6.7 is how the VAT is adjusted.
A credit note is issued when the value of a supply decreases after the Mushak 6.3 was issued: goods came back, a discount was agreed late, or the invoice overstated what was actually delivered.
It matters for VAT because the output tax on the original invoice was too high. The credit note is the document that reduces it, and the buyer uses the same document to reduce the rebate they claimed. Editing the original invoice instead leaves the two sides holding different pieces of paper for the same supply.
Time limits and conditions apply to adjustments. Confirm the current position with your VAT consultant before adjusting an invoice from an earlier period.
At a glance
- Form
- Mushak 6.7
- Name
- Credit note
- In Bangla
- ক্রেডিট নোট
- Who keeps or issues it
- The supplier who issued the original tax invoice.
- When
- When the value of an already invoiced supply is reduced.
- Retention
- VAT records must be kept for 5 years under the VAT and SD Act 2012.
What the form carries
The main fields. Confirm the current prescribed layout with the NBR or your VAT consultant.
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Credit note number and date
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Reference to the original Mushak 6.3 and its date
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Supplier and buyer details with BINs
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Reason for the adjustment
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Reduction in value
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Reduction in VAT
What SORS ERP does with it
SORS ERP holds the data and reports it, but does not print the prescribed layout.
SORS ERP records the event and its accounting: sales returns with return policies, customer credit, refunds and the reversing journal entries all happen from the return itself, so stock comes back, the ledger adjusts and the customer balance reflects it. The document produced is the ERP's own credit document rather than the prescribed Mushak 6.7 layout, which is on the roadmap.
Where businesses get caught
The errors that cost money at audit time.
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Deleting the original invoice
The invoice was issued, the buyer has it, and it is in both registers. The correction is a credit note against it, not a deletion that leaves a hole in your numbering.
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Stock returned without the credit note
Goods come back to the shelf but the customer is still billed for them. Handling the return and the credit as one action stops the two from drifting apart.
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No reason recorded
A credit note with no stated reason is hard to defend at audit and hard to analyse later, when you want to know how much of your credit note volume is damage, wrong picks or late discounts.
Questions
Answered plainly, including where the answer is no.
When do I issue a credit note instead of cancelling an invoice?
Once a tax invoice has been issued to the buyer and has entered both parties' records, a reduction in value is handled with a Mushak 6.7 credit note. Cancellation is for invoices that should never have been issued at all, and a cancelled invoice still stays visible in the numbering.
Does a sales return in SORS ERP create the accounting entries?
Yes. A sales return brings stock back, reverses the revenue and tax entries through account mapping rules, and adjusts the customer balance or raises a refund, all from the one return record.
See SORS ERP running on your own numbers
A 30-minute demo in Bangla or English, with your products, your VAT setup and your questions.