A Debit Note is a document sent by a buyer to the Supplier notifying that a debit has been recorded against the goods returned to the Supplier.
A Debit Note is issued for the value of the goods returned. In some cases, sellers are seen sending Debit Notes which should be treated as like another invoice.
A Debit is for your record of the debit against the Items your return.
1. How to create Debit Note
The user can make a Debit Note against the Purchase Invoice or they can directly make Debit Note from the Purchase Invoice without reference.
Go to the respective Purchase Invoice and click on Create > Return / Debit Note.
The Supplier and Item details will be fetched as set in the Purchase Invoice.
If you had paid partially or fully, make a Payment Entry against the original Purchase Invoice.
In case no payment was made against the original invoice, you could just cancel the Sales Invoice. But, if only 5 out of 10 Items are being returned from an invoice, creating a Debit Note is useful for updating the ledger.
2. Example
From Supplier Blue Mills, you had purchased Cotton worth Rs 2400 + taxes and at the time of delivery, you found that the products were damaged. Now you returned the product a Debit Note will be issued.
Debit Note with payment entry in ERPNext for above example is as below:
