Creating a Debit Note

A debit note is issued to a vendor when you need to reduce the amount you owe them — for example, when you return goods, receive damaged items, or were overbilled. It is the purchase-side equivalent of a credit note.

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When to Use a Debit Note

• You returned goods to a vendor
• You received damaged or incorrect items and need a price reduction
• A vendor overbilled you
• You need to cancel a bill that has already been approved

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How to Create a Debit Note

1. Go to Purchases → Debit Notes
2. Click New Debit Note
3. Fill in the details
4. Click Save & Approve

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Debit Note Fields

Field	Description
Vendor	The supplier the debit note is issued to
Debit Note Number	Auto-incremented
Date	Date the debit note is issued
Reference	Original bill number or vendor reference
Line Items	Items being returned or credited (qty, rate, tax, account)
Notes	Reason for the debit note

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Applying a Debit Note to a Bill

1. Open the debit note
2. Click Apply to Bill
3. Select the bill to offset
4. Enter the amount
5. Confirm

The bill's outstanding balance reduces accordingly.

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Requesting a Refund via Debit Note

If the vendor will refund you cash instead of providing a credit:

1. Open the debit note
2. Click Refund
3. Enter the refund amount, date, and the bank account where money will be received
4. Save

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What Happens in the Books

When a debit note is approved:

1. Accounts Payable is debited (what you owe reduces)
2. Expense account is credited (cost is reversed)
3. Tax accounts are credited (input tax is reversed)

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Frequently Asked Questions

What's the difference between a debit note and a credit note?
A credit note is issued by you to a customer (reducing what they owe you). A debit note is issued by you to a vendor (reducing what you owe them). Both reverse transactions, but on opposite sides of the trade.

Can I partially return goods on a bill?
Yes. Create a debit note for only the items or quantities being returned — you don't have to debit the full bill amount.

Does the vendor need to approve the debit note?
That's a business process decision. In Acusheet, you can approve the debit note on your side at any time. Whether the vendor agrees is handled outside the system.