Debit Notes
For: Anyone reducing what you still owe a vendor — returns, rate or tax adjustments — then applying that credit to bills or refunding it
A Debit Note is a purchase adjustment against a bill. Save makes it Draft and already posts the ledger and reduces vendor Current Balance. Mark As Open is when you can Apply to Bill or Refund. That apply is this debit note's available balance — not opening-balance Apply Credit on a bill header.
What this module does
1. Creating a debit note
Pick Division, Branch, Warehouse. There is only Save. That creates a Draft. There is no Save & Open.
Debit Note#: Auto-generated unless you turn that off under Debit Note Configuration on the form. Default prefix VN; split SDN. Terms & Conditions live in that drawer. Locked after save.
Bill: Required. Pick a pending bill, or tick Use Bill No and type the number.
Vendor, type, items: Vendor required. Type chooses whether stock moves (see next section). At least one item.
2. Type — especially Goods Return
| Type | Result |
|---|---|
| Goods Return | The only type that takes quantity out of the warehouse (return to vendor). Cancel or uncancel of this type is blocked after stock was released |
| Goods Rejection, Rate Difference, Quantity Shortage, Tax Adjustment, Post Sale Discount, Service Cancellation, Other | Value only. Warehouse quantity does not move |
Note: Inventory Config decides when GRPO or Bill adds stock. A Goods Return debit note is the purchase-side return — it deducts. Credit Note Goods Return on sales adds stock back.
3. Viewing, searching, and the list
Status tabs. No Excel export, no Duplicate. Detail: View Vendor, Download, Print. Stats: Used Credit, Unused Credit (available balance).
4. Editing a debit note
Draft only. Vendor and location stay locked.
5. Printing and downloading
Detail: Download and Print.
6. Changing status
Partially Used and Used are set by apply and refund, not Mark As.
| From | Mark As |
|---|---|
| Draft | Open, Cancelled |
| Open | Closed, Draft, Cancelled |
| Partially Used | Closed only |
| Used | Nothing. Mark As is hidden. Apply and refund have already used the balance |
| Closed | Open, Draft — blocked if anything was applied to bills or refunded |
| Cancelled | Draft, Open — except a Goods Return, which cannot be uncancelled |
7. Apply to Bill
Open or Partially Used. Modal applies this note's available balance to Open / Partially Paid / Overdue bills. Cross-currency apply is blocked.
Warning: Apply Credit on a bill header is vendor opening-balance credit. Apply to Bill here is this debit note.
8. Refund
Open or Partially Used, available balance greater than zero. To account is a payment account (Cash / Bank / Payment Clearing / Credit Card). Can move status to Partially Used or Used. Delete refund reverses the journal and restores balance. Cancel the debit note only after refunds are deleted.
9. Deleting a debit note
Hidden once anything is applied or refunded. Non-cancelled delete reverses bill applications, restores Current Balance, puts Goods Return stock back, and deletes the journal.
Business rules
| Topic | Rule |
|---|---|
| Ledger posts on save, including Draft | A debit note posts to the general ledger as soon as it is saved. Open → Partially Used → Used / Closed does not re-post. Cancelled reverses the journal |
| Subscription gate | Only creating a debit note is limited by your plan. Editing, Mark As, Apply to Bill, refund, and deleting are not separately gated |
| No primary-bank gate | Unlike Credit Notes on the sales side, creating a debit note does not require a primary bank |
| Debit note number | Auto-generated unless you turn that off under Debit Note Configuration on the form. Default prefix is VN; split uses SDN. That same drawer stores Terms & Conditions. Locked after save |
| A bill is required | Pick a pending bill for this vendor, or tick Use Bill No and type the number. You cannot save without one of those |
| Division, Branch, Warehouse, Vendor | All four are required to create, plus type, date, shipping address, and at least one item. After save, location and vendor stay locked |
| Currency | Taken from the linked bill when you pick one, otherwise from the vendor. Cross-currency apply to a different bill is blocked. An exchange-rate field appears when the currency differs from the company base |
| Current Balance moves on create | Saving reduces the vendor's Current Balance on this branch by the debit note total, including a Draft. Cancel or delete puts that amount back |
| Only Goods Return deducts stock | That type reduces warehouse quantity. Other types do not touch stock. This is the debit note type — not Inventory Config Stock Deduct Source |
| You can only edit a Draft | Open, Partially Used, Used, Closed, and Cancelled cannot be edited |
| Apply to Bill is not bill-header Apply Credit | Apply to Bill on this module uses this debit note's available balance against Open, Partially Paid, or Overdue bills. Apply Credit on a bill detail is opening-balance credit from the vendor branch — a different action |
| Apply and refund only while Open or Partially Used | Draft, Used, and Closed cannot be applied. Refund also needs available balance greater than zero. Used cannot change status at all |
| Cancelled Goods Return cannot come back | Uncancel is blocked because stock was released on cancel. Other types can Mark As Draft or Open from Cancelled. Cancel is blocked while refunds exist — delete the refunds first |
| Delete | Hidden once any bill application or refund exists. The API also refuses Used, Closed, and Partially Used. Draft, Open, and Cancelled with nothing applied can be deleted |
| No Duplicate, no list Export, no Rejection Order convert | Rejection Orders convert to a Credit Note or PC-to-PC Return, not a Debit Note |
| Attachments | Up to 3 files, 5 MB each |