Debit notes (purchase returns)

A debit note records goods you returned to a supplier, or a price reduction the supplier gave you after billing. It is always based on an approved purchase bill. It lowers what you owe the supplier and takes the returned goods out of stock.

Go to Purchases › Debit Note, or open an approved bill and click Create Debit Note.

Creating a debit note

1. Click Add and choose the Bill No (or start from the bill). The supplier, project, currency and lines are taken from the bill. If you change the currency, the lines are converted (each keeps its base-currency value); every amount shows its base-currency value under it.
2. The quantities shown are what is still left to return on that bill. Lower them for a partial return, or remove the lines you are not returning.
3. Each line leaves the warehouse (and batch) it came into.
4. Set the Debit Note Date, add Notes, and Save as Draft or Save as Approve.

Rules

• Only approved bills can be returned.
• You can't return more than was bought minus what was already returned ("A return quantity is more than what is left to return on the bill.").
• The warehouse must still hold the goods. If they were already sold or moved: "Not enough stock to take back ...: part of it has already left this warehouse."

What happens to the balance

The debit note lowers your balance with the supplier (shown on the supplier statement and balance reports). It does not change the balance due of the original bill.

What it posts

Dr accounts payable and discount received; Cr inventory at its cost (any difference to the return price goes to cost of goods) and tax payable.