Debit Note

Last updated: June 20, 2026

e-Invoice training
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A debit note adjusts a posted purchase invoice, for a return to the vendor, a discount you have negotiated, or a correction, while leaving the original invoice untouched. It is the purchase-side mirror of the sales credit note, and the clean way to reduce what you owe without rewriting a document already on the books.

What you will learn

Why you adjust with a debit note instead of editing the invoice
What the purpose setting does
How it reverses stock and reduces payables

Anatomy of the screen

Vendor and invoice link – the supplier and the posted invoice being adjusted.
Document – the debit note number, date and the all-important purpose.
Items – copied from the invoice and trimmed to what is being returned or adjusted, with the usual totals.
Notes and attachments.

How it behaves

Purpose drives the posting

The purpose is what makes the accounting correct, and it is one of: Reduction Order (reverse the purchase expense), Return Refund (a physical return of goods), Discount Received (a discount the vendor has granted), or Adjustment (a general correction). The same document settles quite different situations depending on which you choose.

It reverses, it does not rewrite

A debit note is raised against a posted invoice and copies its lines so you keep only what applies. Posting it reverses stock where goods are being returned and reduces payables, while the original invoice stays exactly as issued. History is preserved; the correction sits alongside it. The note runs the usual Draft, Verify, Acceptance, Posted, Cancelled cycle, and its balance can offset a future payment or be refunded.

Worked example

Of the 480 units received, 20 are faulty. You raise a debit note against the purchase invoice for those 20 with the purpose Return Refund. Posting it takes the 20 back out of stock and reduces what you owe the vendor by their value, while the original invoice remains on record unchanged.

Edge cases and good practice

Never edit a posted invoice; adjust it with a debit note so the trail stays intact.
Choose the purpose deliberately, because it decides which ledgers move.
Returns reverse stock; a discount or adjustment does not, so pick the purpose that matches reality.