Debit Notes

Debit notes are used to formally request a credit or refund from a supplier. Common scenarios include returning defective goods, claiming for quantity shortfalls, or correcting pricing discrepancies.

Debit Note Lifecycle

stateDiagram-v2
    [*] --> Draft
    Draft --> Sent: Send to Supplier
    Sent --> Acknowledged: Supplier Acknowledges
    Acknowledged --> Settled: Credit Received
    Settled --> [*]

    Draft --> Cancelled: Cancel
    Sent --> Cancelled: Cancel
    Cancelled --> [*]

Status Definitions

Creating a Debit Note

1. Navigate to ERP > Debit Notes and click New Debit Note
2. Select the Supplier
3. Optionally link to the original Purchase Order or AP Invoice
4. Add line items describing the claim

Line Items

Return-to-Supplier Workflow

When goods need to be returned to a supplier:

1. Create a debit note with the items being returned and the reason
2. Send to the supplier for review and acknowledgment
3. Arrange the return shipment of the physical goods
4. Supplier acknowledges the debit note and processes their credit note
5. Settle the debit note once the credit or refund is received

Linking to Other Records

Debit notes can be linked to:

• Purchase Orders - Reference the original order for the returned goods
• AP Invoices - Reference the invoice being disputed or adjusted
• Goods Receipts - Reference the delivery where the issue was identified

These links provide a complete audit trail from procurement through to the claim resolution.

Settlement

When a debit note is settled:

• The supplier's credit is recorded in the system
• The credit can be applied against future AP invoices
• Alternatively, a refund payment is recorded if the supplier issues a direct refund

Navigation

Access Debit Notes from ERP > Debit Notes:

• All Debit Notes - Complete list
• Draft - Being prepared
• Sent - Awaiting supplier response
• Acknowledged - Awaiting settlement
• Settled - Completed claims