Debit Note

Debit note is a document issued by a purchaser to reduce the amount that he owes to a vendor from a previously issued purchase invoice. It is created in the event of a product return, a purchase invoice error, damaged products, and so on.

Note: You can create a debit note only based on a purchase invoice, not on other purchase documents.

Debit note is created to reverse accounting and inventory transactions made by a purchase invoice.

Note: For legal reasons, it is not advisable to delete or change the purchase invoice that has been received from a vendor or has been paid, even if critical errors have been detected in it or the goods have been returned. You must create the debit note to clear such purchase invoice.

The debit note partially or completely reverses the transactions induced by the purchase invoice affecting the transaction journal, the vendors journal, the VAT journal (if your company is a VAT-payer), and the inventory journal. Debit note corrects the inventory quantities and monetary values. The inventory is decreased by the number of goods specified in the debit note by crediting the inventory account. The debit note credits the values in the income account and if your company is a VAT-payer, in the output VAT account; the liability account is credited by the same amount (by total amount). The value in the COGS account is amended.


To go to the Debit Note:

  1. On the Codejig ERP Main menu, click the Purchase module.
  2. Under the Purchase module, click Debit Note.

Note: Codejig ERP also enables you to create the debit note directly from the purchase invoice.

To create the debit note from the purchase invoice

  1. Open the purchase invoice for which you want to create the debit note.
  2. Click the plus icon near the name of the document.
  3. In the Actions Menu select Create - Credit note.

The debit note will be created and its fields will be populated from the purchase invoice fields. However, you can edit and modify values in the fields if, for example, you have made a partial return or the total amount of the returned goods differs from their original total amount.


More information

Purchase Process
Debit Note: General Area
Debit Note: Items Section