A debit note, also known as a debit memo, is issued from a buyer to their seller to request a return of funds due to incorrect or damaged goods, purchase cancellation, or other specified circumstances. A debit note is similar to a credit note, except it’s issued from the buyer’s side. Therefore, debit notes are issued before a credit note can be created by the supplier.
A debit note acts as a buyer’s formal request for a credit note from the seller. The document serves as evidence to support a purchase return in the accounting books of a buyer.
As a customer, if you purchase goods from a seller or supplier and would like to return the goods for any valid reason, you can issue a debit note.
There are several reasons in which a debit note should be issued. Some common scenarios of when to issue a debit note include:
1) The goods received are damaged or defective
2) The purchaser has been overcharged
3) The invoice value is incorrect (due to extra goods being delivered, or goods are charged at a lesser value, etc.)
How to issue debit note?
Let’s see how to record a debit note in Envoici:
Go to Expenses> Record Purchases, Select the Purchase Invoice for which you want to issue debit note.
Under Action button of that Invoice click on Return This Purchase.
Fill in the quantity details you want to return and warehouse details accordingly.
Click on save and user can print it.
User can check all his Purchase returns: Go to Expenses> Record purchases, click on purchase return.