Debit note
In Arabic إشعار مدين
A document a buyer raises to reduce the amount owed to a vendor, for goods returned or a price allowance agreed after billing.
In plain words
When goods go back to a vendor, or a vendor agrees to take something off a bill, a debit note records it. It lowers the vendor’s balance and, for returned goods, takes them out of stock.
It is the buyer-side mirror of a credit note. The vendor usually issues a credit note for the same amount, and the two should agree.
The common mistake is crediting returned goods at today’s price instead of the price on the original bill, which leaves a small difference on the vendor’s account that nobody can explain.
- Billed price
- SAR 45.00 per ctn
- Returned, 10 ctn
- SAR 450.00
- VAT 15%
- SAR 67.50
- Owed to the vendor before
- SAR 5,000.00
- Owed after
- SAR 4,482.50
In Axon Suite
How Axon Suite handles it
A debit note against a bill in Axon Suite credits each line at the price and discount the bill was settled at. Posting it takes the stocked goods out of the warehouse and lowers what you owe the vendor.
Feature
Debit notes for goods sent back
A debit note against a bill credits each line at the price and discount the bill was settled at. Posting it takes the stocked goods out of the warehouse and lowers what you owe the vendor, in one step.
Open: Debit notes for goods sent back