Debit Note

A Debit Note is issued to a supplier to reduce the amount you owe them. It is typically used for returns, overcharges, or post-purchase adjustments.

When to Issue a Debit Note

• Goods returned to a supplier
• Overcharged on a supplier invoice
• Post-purchase price adjustment
• Quality issues requiring a discount

Creating a Debit Note

1. Go to Accounting > Debit Note and click New.
2. Select the Supplier.
3. Select the Return Against — the original Purchase Invoice.
4. Enter items being returned or adjusted.
5. Click Save and Submit.

How It Affects Accounting

A Debit Note posts:

• Debit: Accounts Payable (reduces supplier balance)
• Credit: Purchase Return / Expense Account (reduces expense)

If VAT is applicable, the VAT is also adjusted.

Creating Debit Notes from Purchase Invoices

1. Open the submitted Purchase Invoice.
2. Click Create > Debit Note.
3. The items and amounts are copied from the original invoice.
4. Adjust as needed.
5. Save and Submit.

Related Topics

• Credit Note
• Purchase Invoice