Debit notes are official documents prepared by the purchaser to provide information to their supplier for debiting the supplier’s account.
Once the supplier has accepted the Debit Note, the purchaser will have reduced their liability and are required to pay less to the supplier.
Create a Debit Note
Learn more about how to create a Debit Note here.
Return of Goods
When purchasers return goods bought on credit terms, the reason for the return will be stated in the Debit Note, and given along with the goods back to the supplier.
In the purchaser’s Journal Entries, this Purchase Return will be recorded.
Purchase Return Account
Overcharged by Suppliers
The purchasers can also prepare Debit Notes if they have been overcharged by their suppliers and would like to inform them about the correct payment that should have been charged.
What happens after issuing a Debit Note?
A Debit Note will be exchanged for a Credit Note from your supplier.
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