Debit notes
Take money off what you owe a supplier: goods returned, short deliveries, overcharges and agreed discounts.
Overview
A debit note is the document you send a supplier to reduce what you owe: goods returned, units billed but not delivered, an overcharge, or an agreed amount. O2M numbers it and works out the amount and GST.
Why use it
- Never pay for goods you returned or never received.
- Send suppliers a GST-format document by e-mail.
- Keep the net amount owed on every invoice right.
What a debit note is
A debit note is the document you send a supplier to reduce what you owe them. O2M issues it with its own number (for example DN-2627-00001), works out the amount and GST from the supplier invoice, and keeps it in GST format as a PDF you can download or e-mail.
The list shows each debit note's number, date, supplier, reason, the invoice or return it is against, the total and its status. Filter by status, reason or supplier, or search by debit note, invoice or return number. Click a row to open it.
Reasons
| Reason | When | Issued |
|---|---|---|
| Damaged / rejected units | Goods sent back to the supplier | By O2M when the return to vendor is sent back |
| Short delivery | The invoice bills units that never arrived | By O2M when the invoice is recorded, or by you |
| Price above the order | The invoice charges more per unit than the purchase order | By you |
| GST rate above the order | The invoice charges a higher GST rate than the purchase order | By you |
| Other | Any amount you agreed with the supplier, with a reason | By you |
Issue a debit note
- 1Open Inbound → Debit notes and click New debit note, or open a supplier invoice and issue it from there.
- 2Choose the supplier and the supplier invoice.
- 3Choose the reason. Every line of the invoice is listed with what arrived, was accepted and was rejected, and O2M shows what can still be debited on each line.
- 4Enter the units, or for Other a description and amount.
- 5Click Issue debit note. Download the PDF or e-mail it to the supplier.
Good to know A debit note can never take off more than the invoice total. It does not change whether the invoice matched: a mismatched invoice still needs approval.
Credit note and status
- Waiting for credit note: issued and counted against the invoice.
- Settled: you recorded the supplier's credit note number, date and amount. If the supplier credited less, the rest is shown as not credited.
- Cancelled: issued by mistake, with a reason. Its number stays used.
Debit notes appear on the supplier invoice, in the Supplier ledger, and in the accounting export as debit note vouchers.
Good to know Debit notes show purchase prices, so they need an inbound permission and the permission to see purchase prices.