Debit note

A debit note is the mirror of a credit note on the purchase side: you return goods to a supplier, or the supplier agrees a price reduction, and you record a document that lowers what you owe and reverses any input VAT you claimed on the original bill. It refers to the supplier's original invoice, so the Purchase Book shows the reduction and the VAT Return claims less input VAT. In BRAccount it is a Purchase Invoice with Is Return ticked and Return Against set, created from the original with the Return button. It appears in the IRD Debit Note Register. The demo chairs were bought without VAT, so sending one back only reduces the asset and the payable.

Debit note total = Returned value + Input VAT on the returned value; it reduces input VAT for the month.

1. 01Go to Invoicing > Purchase Invoice and open the original, ACC-PINV-2026-00004.
2. 02Click Create > Return / Debit Note; a new invoice opens with Is Return ticked.
3. 03Keep only the returned item, for example one chair at Rs 8,000.
4. 04Enter the supplier's credit note number in Bill No if they issued one.
5. 05Submit. The entry above posts, the payable to the supplier falls and the note lists in the IRD Debit Note Register.

Make a Purchase Invoice with Is Return ticked. It lists in the IRD Debit Note Register.

Sending back a faulty chair reduces the Rs 40,000 bill by Rs 8,000.