A Debit Note is a document sent by a buyer to the Supplier, indicating that a debit has been recorded for goods returned to the Supplier.

A Debit Note is issued for the value of the returned goods. In some instances, sellers send Debit Notes that should be treated similarly to another invoice.

A Debit Note serves as a record of the debit against the Items returned.

1. How to create Debit Note

The user can generate a Debit Note against the Purchase Invoice, or they can directly create a Debit Note from the Purchase Invoice without referencing.

1. Navigate to the relevant Purchase Invoice and select “Create > Return / Debit Note.”
2. The Supplier and Item details will be populated as configured in the Purchase Invoice.
3. If partial or full payment has been made, create a Payment Entry against the original Purchase Invoice.
4. Save and Submit the Debit Note.

The other steps are similar to a Purchase Invoice.

1.1 How does Debit Note affect ledger

The Debit Note will reverse the impact of the purchase invoice.

Refer the Purchase Invoice page for any other details.

1.2 No payment was made against Sales Invoice

If no payment was made against the original invoice, you could simply cancel the Sales Invoice. However, if only 5 out of 10 items are being returned from an invoice, creating a Debit Note proves useful for ledger updating.

2. Example

3. Related Topics

1. Payment Entry
2. Credit Note