Zikpro - Debit Note
A Debit Note is a note prepared by a purchaser to notify the supplier that the goods have been returned and a debit has been entered in books.
It reflects the amount of the returned items. Sellers also sometimes send Debit Notes, which must be treated as another invoice.
A Debit Note assists you in maintaining a proper record of returns to the supplier.
1. How to Make a Debit Note
You can make a Debit Note against a Purchase Invoice, or even without reference to it.
How to do it:
Go to the Purchase Invoice.
Click Create > Return / Debit Note.
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ERPNext will directly pick up the supplier and item details from that invoice.
If you have already paid for the invoice in full or part, first create a Payment Entry for it.
Then, save and submit the Debit Note.
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The subsequent steps are similar to creating a normal Purchase Invoice.
1.1 How Does It Impact the Ledger?
A Debit Note cancels out the impact of the initial Purchase Invoice in your books.
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So, the item and price figures will be negated, and your ledger will be in the correct position.
1.2 What If No Payment Was Issued?
If payment was not made, you can just cancel the invoice. But, if not all items (such as 5 out of 10) are returned, then the Debit Note is preferable—it adjusts your ledger correctly without voiding the entire invoice.
Example
You have purchased cotton for Rs. 2400 + tax from Blue Mills. When they delivered it, you found it was defective, so you returned the goods.
Now, a Debit Note needs to be issued for the value of goods returned.
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In ERPNext, you can enter a Debit Note along with a Payment Entry to correctly account for this return.
2. Related Topics
Payment Entry
Credit Note