RisingERP - Debit Note

Debit Note

A Debit Note is a communication from a buyer to a supplier, indicating that a debit has been recorded for goods returned to the supplier.

Its a document issued for the value of the returned goods, Debit Notes are sometimes utilized by sellers as an alternative form of invoice.

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

1. How to Generate a Debit Note

Users have the option to create a Debit Note against the Purchase Invoice or directly from the Purchase Invoice without a reference.

1. Navigate to the respective Purchase Invoice and click on Create > Return / Debit Note.
2. Supplier and item details will be fetched as specified in the Purchase Invoice.
3. If partial or full payment was made, a Payment Entry against the original Purchase Invoice is required.
4. Save and Submit.

The subsequent steps align with those of a regular Purchase Invoice.

1.1 Impact on Ledger

The Debit Note reverses the impact of the purchase invoice.

Additional details can be referred to on the Purchase Invoice page.

1.2 No Payment Made Against Purchase Invoice

If no payment was made against the original invoice, canceling the Purchase Invoice suffices. However, if only a portion of the items (e.g. 4 out of 10) is being returned, creating a Debit Note proves beneficial for ledger updates.

2. Example

Consider an instance where you purchased cement worth ₦5,375 + taxes from Supplier Lafarge. Upon delivery, you discovered that the products were damaged. Upon returning the product, a Debit Note would be issued to you