Supplier Debit Note Tutorial

Overview

A Supplier Debit Note is used to decrease the amount owed to a supplier most often because goods were returned to the supplier.

Although only one transaction type is needed for supplier debit notes, they were separated in this example into an expense-related adjustment Debit Note (EXP) and an inventory-related adjustment (Debit Note (INV). 

These tutorials explain how to create Supplier Debit Notes.

Navigation Example: Main Menu > Procurement > Supplier Debit Notes (INV)

Navigation Example: Main Menu > Accounting > Supplier Debit Notes (EXP)

Table of Contents

Supplier Debit Note Types

The two types of debit notes used in this example are:

1. Supplier Debit Note - Expenses (EXP)

• Purpose: Used to record a debit note against a Supplier Invoice (EXP) when an expense is recouped or reduced.
• Key Difference: A Supplier Debit Note (EXP) does not affect inventory or production costs (e.g., services, fees, administrative costs).

1. Supplier Debit Note - Invoice (INV)

• Purpose: Used to record a debit against a Supplier Invoice (INV) when the stock was returned or credited.
• Key Difference:  These debit notes typically impact Inventory by reducing the amount of stock.

How to Copy a Supplier Invoice (INV) to a Supplier Debit Note (INV)

1. Display a list of Supplier Invoices (INV).
2. Double-click the applicable invoice to open it.
3. Click Actions (button) > Copy to Supplier Debit Note (INV).
4. Uncheck items that must not be copied on the popup.
5. Click Copy (button).
6. If the checkbox next to Open new Transaction in the bottom left-hand corner is checked, the debit note is opened.
7. Edit the Supplier Debit Note (INV) as needed.
8. Click Save (button).
9. Allocate the Supplier Debit Note (INV) to a Supplier Invoice (INV) as follows:
   1. Click Menu (button) > Open Transaction in Ledger.
   2. In the Outstanding block on the right click Select (button).
   3. Check the checkbox next to the applicable Supplier Invoices (INV).
   4. Click Allocate (button).
   5. Click Done (button).

How to Create a Supplier Debit Note (INV)

1. Navigate to Supplier Invoices (INV).
2. Click New (button).
3. Select the Supplier from the dropdown list.
4. Fill in the Reference and Note fields.
5. Select a Category (if applicable).
6. Add Items in one of the following ways:

1. Click Add (Popup) (button) to add items from an existing document and select one of these options:
   1. Items: Opens a list of items > Select an Item > Click Add (button) at the bottom of the popup.Timekeeping: Opens a list of timekeeping records > Select the relevant records > Click Select (button) at the bottom of the popup.Copy Items (e.g. Copy Items from Supplier Invoices): Displays entries for all the copy rules, and displays items based on these copy rules: the Type (All, Flow, Parent, Contact) selected for the Copy Rule determines which items are available.Select the items > Click Add (button) at the bottom of the popup.
      1. Items: Opens a list of items > Select an Item > Click Add (button) at the bottom of the popup.Timekeeping: Opens a list of timekeeping records > Select the relevant records > Click Select (button) at the bottom of the popup.Copy Items (e.g. Copy Items from Supplier Invoices): Displays entries for all the copy rules, and displays items based on these copy rules: the Type (All, Flow, Parent, Contact) selected for the Copy Rule determines which items are available.Select the items > Click Add (button) at the bottom of the popup.
         • Items: Opens a list of items > Select an Item > Click Add (button) at the bottom of the popup.
         • Timekeeping: Opens a list of timekeeping records > Select the relevant records > Click Select (button) at the bottom of the popup.
         • Copy Items (e.g. Copy Items from Supplier Invoices):
           • Displays entries for all the copy rules, and displays items based on these copy rules: the Type (All, Flow, Parent, Contact) selected for the Copy Rule determines which items are available.
           • Select the items > Click Add (button) at the bottom of the popup.
2. Type a search criterion in the Search block (optional)
   1. Select an item from the dropdown list in the adjacent block.Type the quantity in the block next to Qty.Click Add (button).
      1. Select an item from the dropdown list in the adjacent block.Type the quantity in the block next to Qty.Click Add (button).
         • Select an item from the dropdown list in the adjacent block.
         • Type the quantity in the block next to Qty.
         • Click Add (button).

1. Click Custom (button) to add a custom line item: Enter a Description, Quantity, Unit Cost and select a VAT Type.
2. Set the Status on the line items to Complete (optional).
3. Set the Status of the Debit Note to Complete.
4. If applicable, allocate the Supplier Debit Note (INV) to a Supplier Invoice (INV) as follows:
   1. Click Menu (button) > Open Transaction in Ledger.
   2. In the Outstanding section on the right, click Select (button).
   3. Check the checkboxes next to the relevant Supplier Invoices (INV).
   4. Click Allocate (button).
   5. Click Done (button).

How to Copy a Supplier Invoice (EXP) to a Supplier Debit Note (EXP)

1. Display a list of Supplier Invoices (EXP).
2. Double-click the applicable invoice to open it.
3. Click Actions (button) > Copy to Supplier Debit Note (EXP).
4. Click Copy (button).
5. Check the checkbox next to Open new Transaction in the bottom left-hand corner.
6. Edit the Supplier Debit Note (EXP) as needed.
7. Click Save (button)
8. Allocate the Supplier Debit Note (EXP) to a Supplier Invoice (EXP) as follows:
   1. Click Menu (button) > Open Transaction in Ledger.
   2. In the Outstanding block on the right click Select (button).
   3. Check the relevant Supplier Invoices (EXP) to allocate to.
   4. Click Allocate (button).
   5. Click Done (button).

How to Create a Supplier Debit Note (EXP)

1. Navigate to Supplier Invoices (EXP).
2. Click New (button).
3. Select the Supplier from the dropdown list.
4. Fill in the Reference and Note fields.
5. Select a Category (if applicable).
6. Choose the line items:
   1. Select Items in one of the following ways:
      1. Click Add (Popup) (button) to add items from an existing document and select one of these options:
         1. Items: Opens a list of items.
         2. Copy Items (e.g. Copy Items from Supplier Invoices): Displays a list of items from Parent transactions that have not yet been copied.
      2. Type a search criterion in the Search block and select the item from the dropdown list in the adjacent block.
   2. Qty = Type the number of the items that were returned.
   3. Click Add (button).
   4. Click Custom (button) to add a custom line item:
      1. Enter a Description, Quantity, Unit Cost and select a VAT Type.
         1. Enter a Description, Quantity, Unit Cost and select a VAT Type.
7. Set the Status on the line items to Complete (optional).
8. Set the Status of the Debit Note to Complete.
9. Click Save (Button).
10. If applicable, allocate the Supplier Debit Note (EXP) to a Supplier Invoice (EXP) as follows:
    1. Click Menu (button) > Open Transaction in Ledger.
    2. In the Outstanding section on the right, click Select (button).
    3. Check the relevant Supplier Invoices (EXP) to allocate to.
    4. Click Allocate (button).
    5. Click Done (button).

Related Topics

• Tutorials: Supplier Invoices
• Tutorials: Supplier Payments