Accounting: Debit Notes

Debit notes are used to track debts owed by customers or to vendors due to modifications to confirmed customer invoices or vendor bills. Issuing a debit/credit note is the only legal method for canceling, refunding, or modifying a validated invoice. Creating a Customer Debit Note: Go to Accounting ‣ Customers ‣ Invoices. Select the desired invoice(s), click Actions, and select Create Debit Note. In the Create Debit Note window, fill in the Reason and update the Use Specific Journal and Debit Note Date fields if needed. Enable the Copy Lines option to copy the invoice lines and click Create Debit Note. In the debit note, update the Product and Quantity and click Confirm. You can also create a debit note from the invoice form view by clicking the (gear) icon and selecting Debit Note. Creating a Vendor Debit Note: Debit notes from vendors are recorded the same way debit notes are issued to customers. Go to Accounting ‣ Vendors ‣ Bills and select the desired bill(s). Click Actions and select Create Debit Note. You can also create a debit note from the vendor bill form view by clicking the (gear) icon and selecting Debit Note.