Debit Note (DN)

Reduce what you owe a supplier for an overcharge, a short supply, a rebate or a price claim, and optionally take it off one purchase invoice.

A debit note reduces what you owe a supplier without any money changing hands: the supplier overcharged you, sent less than billed, or agreed a rebate. You enter it as a balanced debit and credit entry, and can take it off one purchase invoice.

Before you begin

• Your role needs permission to create vouchers. See Users & Roles.
• The supplier's account and the account for the other side must exist in the Chart of Accounts, for example Purchase Returns, Discount Received or the expense the bill was booked to.
• The date must fall in an open financial year. See Financial Years.
• If goods physically went back to the supplier, use a Purchase Return instead. A debit note does not move stock.

Where to find it

Open Accounting → Accounting → Debit Note (DN). The quick action New DN opens the same screen.

Enter a debit note

1. Check the Note No. It is filled in for you and runs per branch (for example DN-2026-00004).
2. Set the Date.
3. Type the supplier's name in Against Supplier. This is a note for the printout only; it does not choose the account.
4. In Debit Note Entries, on the first row pick the supplier's account in Account Ledger and enter the amount in Debit.
5. On the second row pick the other account, for example Purchase Returns, and enter the same amount in Credit.
6. Check that the badge above the grid shows Balanced.
7. Type the Reason / Narration, for example "Overcharged on 40 cartons".
8. Click Save Debit Note.

Take the note off a purchase invoice

1. Next to Reference Purchase Invoice (optional):, click Link Invoice….
2. Pick the bill. Only unpaid and part-paid bills are listed, with their balance.
3. Enter the lines and save. The bill's paid amount and balance update, so less is left to pay.

The note cannot be more than the bill still owes, and the bill cannot be a draft or cancelled.

Find, print, edit or delete a debit note

The Debit Notes list shows the last 30 days. Change the dates, pick a branch, or search by number or narration.

• Print opens the note with signature lines, ready to send to the supplier.
• Edit loads it into the form after you confirm. Click Update Debit Note. It keeps its number, and the old version is kept in the audit log.
• Delete opens Delete permanently, which shows the ledger changes and asks for a reason and your password. A linked bill gets its balance back.

What happens in the books

The note posts the lines exactly as entered. The supplier's account is debited, which lowers what you owe them.

Example: Ali Traders overcharged you Rs 3,000 on a bill.

Account	Debit	Credit
Ali Traders (supplier)	Rs 3,000
Purchase Returns & Allowances		Rs 3,000

You owe Ali Traders Rs 3,000 less, and your purchase cost falls by Rs 3,000. If you linked the bill, its balance falls by Rs 3,000.

Common questions

What is the difference between a debit note and a purchase return? A purchase return sends goods back: it takes them out of stock and reduces the bill. A debit note changes only the money, for claims and allowances where no stock moves.

My note was saved as "pending approval". Debit notes at or above the limit in Settings → Accounting Preferences → Approval Workflow wait for approval in the Voucher Register. Until then nothing is posted.

Which account should take the credit side? Use the account the bill was originally booked to (Purchases, or an expense), or a Purchase Returns or Discount Received account if your chart has one. Ask your accountant if unsure.

The supplier's balance did not change. Check that the debit line is on the supplier's own account, not on a general creditors account. Against Supplier alone does not post anything.

Where do I see the note on the supplier's account? Open the supplier in Supplier Ledgers. The note shows with its DN number.