Create a debit note

A debit note reduces a bill you've already posted. Use it when you return goods the vendor already billed you for, when the vendor overcharged, or when you agreed a discount after the bill. It takes the amount off what you owe the vendor and reverses the cost.

A posted bill can't be edited, so a debit note is how you correct it.

Steps

1. Open Purchases › Debit Notes

   In the menu on the left, select Purchases, then Debit Notes. Select New Debit Note.

   You can also start from the bill: in Purchases › Bills, open the actions menu (⋮) on a posted bill and select Create Debit Note.

   

   1. Debit Notes in the Purchases menu.
   2. New Debit Note.
   3. Status: Draft, Issued, Applied or Cancelled.
2. Choose the bill

   The New Debit Note panel opens on the right.

   

   1. Select Bill: search by bill number or vendor. Only posted bills with a balance due are listed. Required.
   2. Reason for Reversal: why you're reducing the bill, for example 2 units returned damaged.
   3. Reversal Date: the date of the debit note. It starts on today. Required.
   4. Create Debit Note opens the debit note form.
3. Choose the lines and amounts to reduce

   The form shows the bill's vendor, number and lines. Debit Note Number is given when you save.

   

   1. Vendor Name and Bill Number come from the bill.
   2. Reversal Date.
   3. Debited Qty: how many units you're reducing on this line. It can't be more than the Original Qty.
   4. Unit Price: the price per unit to reduce by. Change it to reduce by a price difference instead of whole units.
   5. The delete button drops a line you're not reducing.
4. Check the total and create the debit note

   

   1. Reason for Reduction: from the panel. You can change it.
   2. TOTAL ADJUSTMENT: what comes off the bill. It can't be more than the Bill Balance Due.
   3. Create Debit Note.

   You'll see Debit note … created successfully, and you're taken back to the list. The debit note is saved as a Draft. Nothing is posted yet.

5. Post the debit note

   In the Debit Notes list, select the post button (the paper plane) on the draft. In the Post Debit Note window, select Yes, Post It.

   The debit note's status becomes Issued, and the bill's balance goes down by its total. You'll see Debit note issued successfully.

   ⇄ See what a debit note posts

   You see the post button only if your role can approve debit notes.

Debit notes for returned goods

If you return goods with Return on a goods received note after they were billed, the note shows Debit note required, with the amount and the bill. Raise a debit note against that bill for the returned quantity. For a line matched to goods received, the debit note reverses goods received not invoiced instead of the expense.

Cancel a debit note

Select the cancel button (the crossed circle) on the debit note's row. In the Cancel Debit Note window, add a Reason for Cancellation (Optional), then select Yes, Cancel It. You'll see Debit note cancelled successfully. If the debit note was already posted, cancelling posts the exact opposite, and the amount goes back onto the bill.

If something goes wrong

Message	What to do
Please select a bill	Choose a bill in Select Bill.
Reversal date is required	Pick a Reversal Date.
At least one line item must have a quantity greater than 0	Enter a Debited Qty on at least one line.
Debited quantity cannot exceed original quantity (…)	Enter no more than the bill's quantity on that line.
Debit note total cannot exceed outstanding balance (…)	Reduce the quantities or prices. The vendor may already have been paid part of the bill.
Cannot create debit note for draft bill.	Post the bill first, or just edit the draft.
Cannot create debit note for a bill with no remaining payable balance.	The bill is fully paid or already reduced. Agree a refund with the vendor instead.
Only draft debit notes can be issued.	The debit note was already posted or cancelled.