A Debit Note records a reduction in the amount owed to a supplier — for returned goods, price adjustments, or other purchase corrections. It can be linked to a Purchase Invoice or Purchase Return Order, and posts to accounts and inventory when approved.
The Debit Note list shows all debit notes with supplier, reference document, date, amount, whether an e-Way Bill was generated, and status. Use quick filters to view Draft, Approved, Closed, or Cancelled debit notes. From the list you can create new debit notes, open existing ones, edit drafts, or delete draft debit notes.
List ViewList row actions
| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft |
| Delete | Draft |
| View | All statuses |
Quick Start — Create a Debit Note
1. Navigate
Go to Purchase → Debit Note from the left menu, or create a debit note from a Purchase Invoice or Purchase Return Order.
2. Create new debit note
Click New to open the debit note entry screen, or use Create Debit Note from a Purchase Invoice or Purchase Return Order to pre-fill details.
3. Fill in details
Link to a Purchase Invoice or Purchase Return Order, or choose Without Invoice Ref for standalone adjustments.
Enter the Bill Number, Payment mode, Cash Account, Due Date, and Supplier Invoice Number.
Add item lines with quantities and rates to debit. Review totals and taxes.
4. Save
save — keeps the debit note as a Draft.
Save And Approve — approves and posts the debit note in one step.
Cancel — closes the form without saving.
Header Fields Reference
| **Field** | **Description** |
|-----------|-----------------|
| Date * | Date of the debit note. |
| Bill Number * | Unique debit note reference. Auto-generated when numbering is configured. |
| Employee In charge | Purchase employee responsible for this debit note. |
| Supplier * | Supplier to whom the debit note is issued. |
| Without Invoice Ref | Option to create a debit note without linking to a purchase invoice. |
| Purchase Invoice | Linked purchase invoice, when applicable. |
| Purchase Return Order | Linked return order, when created from a return workflow. |
| Payment mode | Payment method associated with the debit note. |
| Cash Account | Cash or bank account for the transaction. Shown based on payment mode. |
| Payment Term | Supplier payment terms. |
| Due Date | Payment due date for the debit note. |
| Supplier Invoice Number | Supplier's original invoice or bill reference. |
| Branch | Branch for the transaction. Shown when multi-branch is enabled. |
| Brand | Brand for brand-wise profit tracking. Shown when enabled. |
| Project | Optional project link. |
| Currency / Currency Exchange Rate | Shown when multi-currency is enabled. |
| Notes | Remarks printed on the debit note. |
| Internal Notes | Internal remarks not shown on print. |
> Many optional header and line fields are controlled by Purchase Settings (additional item line fields, discounts, charges, bill layout).
Item Lines — ITEMS
| **Column** | **Description** |
|------------|-----------------|
| Sl.No | Line serial number. |
| Item | Item being debited. Required. |
| Item code, Variant, Description, HSN, Brand | Optional columns enabled in Purchase Settings. |
| Qty | Quantity to debit. Required. |
| Unit | Unit of measure. Required. |
| Rate | Price per unit. Required. |
| Amount, Trade Discount, discounts, Taxable Amount, Taxes, Tax Amount, Total | Calculated based on tax and discount settings. |
Actions & Status
View toolbar actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Approve | Finalizes and posts the debit note to accounts and inventory. | Draft |
| Edit | Opens the debit note for editing. | Draft |
| Delete | Permanently removes the debit note. | Draft |
| Clone | Creates a copy of the debit note. | All (if permitted) |
| Print | Prints the debit note. | All |
| Export | Exports the debit note to Excel. | All |
More menu (⋮) actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Cancel | Cancels the debit note. | Approved |
| Revise Debit Note | Creates a revised debit note from a cancelled one. | Cancelled |
| Payment In | Records a payment received against the debit note. | Approved |
| Add Job Card Allocation | Links the debit note to job card allocations. | Approved |
| WorkFlow Request | Starts a company process linked to this debit note. Does not approve the debit note. See WorkFlow Request. | Approved, Closed |
| Update Secondary Status | Updates a custom secondary status. | Approved, Closed |
| Master Update | Updates selected header fields without reopening the full form. See Master Update. | Approved, Closed |
| Add Transportation | Adds or edits transporter and vehicle details. Hidden once an e-Way Bill is generated. See e-Way Bill. | Approved, Closed |
| Generate EWayBill | Generates a GST e-Way Bill for the return movement. Hidden once generated. See e-Way Bill. | Approved, Closed |
| Cancel EWayBill | Cancels a generated e-Way Bill. Shown only when one exists. | Approved, Closed, Cancelled |
| Mark As Closed | Manually closes the debit note. | Approved |
| Undo Close | Reverts a manual close. | Closed (only when manually closed) |
| Export Items | Exports item lines to Excel. | All |
Statuses
| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved but not yet approved. Can be edited or deleted. |
| Approved | Finalized and posted. Supplier payable and inventory are updated. |
| Closed | Debit note is closed — typically after payment or manual close. |
| Cancelled | Debit note has been cancelled. Use Revise Debit Note to create a replacement. |
| Multi Level Approval | Awaiting multi-level approval workflow. |
Posting note: Debit Notes post to accounts and inventory when approved. Supplier payable is reduced and stock is adjusted based on the debited items.
Master Update
Master Update lets you change selected header fields on an approved or closed debit note without editing the full document or item lines. Open the three-dot menu on the debit note and select Master Update.
| **Field** | **Can be updated?** | **Notes** |
|-----------|---------------------|-----------|
| Date * | Yes | Cannot be set before the accounts closing date. |
| Employee In charge | Yes | |
| Payment Term | Yes | |
| Due Date | Yes | |
| Supplier Invoice Number | Yes | |
| Branch | Yes | Shown when multi-branch is enabled. |
| Brand | Yes | Shown when brand-wise tracking is enabled. |
| Project | Yes | |
| Supplier, payment mode, item lines, totals | No | Edit the full debit note (Draft) or cancel and revise. |
Click Confirm to save changes or Cancel to close without saving.
e-Way Bill
An e-Way Bill (EWB) is the GST movement permit for goods above the threshold value. On an approved (or closed) debit note, add transportation details with Add Transportation, then use Generate EWayBill. A purchase debit note is an Outward supply — goods going back to the supplier — so the consignor (Bill From / Dispatch From) is your company and shipping center, and the consignee (Bill To / Ship To) is the supplier. Most fields are pre-filled from the debit note and remain editable in the confirm form.
This applies to the Purchase Debit Note only. Sale debit notes do not generate e-Way Bills.
Defaults
| **Field** | **Default on a debit note** |
|-----------|-----------------------------|
| Supply Type | Outward |
| Sub Supply Type | Others |
| Sub Supply Description | Purchase Return (required when Sub Supply Type is Others) |
| Document Type | Debit Note |
| Transaction Type | Regular (1) |
Parties
| **Block** | **Source on the debit note** |
|-----------|------------------------------|
| Bill From | Your company, or the branch when the branch shows its own address on the bill. |
| Dispatch From | The debit note's shipping center address. |
| Bill To | The supplier, with GSTIN from the supplier (or URP if unregistered). Bill To state comes from the billing address. |
| Ship To | The supplier shipping address. Ship To GSTIN is pre-filled from the supplier GSTIN, or URP. |
> For the complete field-by-field reference of the four party blocks and the transportation Part A / Part B fields, see Delivery Challan → e-Way Bill Generation — the same generation form is shared. For Ship To GSTIN rules from 1 August 2026, see E-Invoice / E-Way Bill.
Use Cancel EWayBill to cancel a generated e-Way Bill from the system.
View Tabs & Side Panels
When you open a debit note in full view (not in a small modal), the right side shows tabbed panels. Click the expand icon on a tab to open the same data in a larger modal.
Top panel
| **Tab** | **What it shows** |
|---------|-------------------|
| Summary | Linked documents — payment vouchers, return orders, and related follow-up transactions from this debit note. See Purchase Transaction Summary. |
| Journal Info | Accounting journal entries posted by this debit note. Requires journal access. See Journal Report. |
Middle panel
| **Tab** | **What it shows** |
|---------|-------------------|
| Payments | Payment vouchers and refunds recorded against this debit note. |
| RP | Returnable packaging (RP) movement with the supplier — record In and Out quantities per RP Item on this debit note. Shown on Approved or Closed debit notes when returnable packaging is enabled and you have supplier RP access. |
Bottom panel (all transactions)
| **Tab** | **What it shows** |
|---------|-------------------|
| History | Activity log — who created, approved, edited, or cancelled the debit note and when. |
| Attachments | Files uploaded to this debit note. |
| Secondary Status | Custom secondary status history and updates, when secondary status is configured. |
Best Practices
Link debit notes to the original Purchase Invoice or Purchase Return Order whenever possible for full traceability.
Create debit notes from a Purchase Return Order only after goods have been delivered back to the supplier.
Approve debit notes promptly so supplier balances and inventory reflect the adjustment.
Use Payment In to record refunds or credits received from the supplier against the debit note.
Use Revise Debit Note on cancelled debit notes instead of creating unrelated new documents.
Add transportation details before generating the e-Way Bill so the vehicle and transporter information is complete.
Configure Purchase Types for correct numbering and tax rules before creating debit notes.
FAQ
When should I use Without Invoice Ref?
Use it for standalone supplier adjustments that are not tied to a specific purchase invoice — for example, a general credit agreed with the supplier.
Can I create a debit note directly from a Purchase Invoice?
Yes. On an approved Purchase Invoice, use Create Debit Note to pre-fill supplier, items, and rates.
Does approving a debit note affect stock?
Yes. Approved debit notes post to both accounts and inventory, reducing stock for returned or adjusted items.
Can I edit an approved debit note?
No. Use Master Update for allowed header fields, or Cancel and use Revise Debit Note.
What is the difference between Cancel and Mark As Closed? Cancel voids an approved debit note. Mark As Closed marks a completed debit note as closed without cancelling it.
When must a debit note link to a purchase invoice or return order?
Unless Without Invoice Ref is selected, the debit note must link to an approved Purchase Invoice or Purchase Return Order.
Why does approve fail when linked to a purchase invoice?
The debit note date must be on or after the linked invoice date. The purchase invoice must be approved and not cancelled.
What is Without Invoice Ref used for?
Standalone supplier credits or adjustments not tied to a specific invoice — for example, a negotiated lump-sum credit. Inventory and stock checks still apply unless configured otherwise for referenceless notes.
Can I use Purchase Reversal payment mode on a referenceless debit note?
No. Purchase Reversal payment mode is not allowed on debit notes created without an invoice reference.
Does every debit note reduce stock?
Approved debit notes with inventory items reduce stock on approve. Referenceless or inventory-only adjustments may behave differently depending on item type and configuration — confirm lines before approving.
Why does approve fail with "payment mode missing"?
Select a Payment mode before approving. Payment mode is required on every debit note.
How do I record a refund from the supplier?
Use Payment In from the debit note view to record money received against the debit note balance.
Which header fields can I change with Master Update?
Date, Employee In charge, Branch, Brand, Project, Due Date, payment/delivery terms, and Supplier Invoice Number. Item lines and amounts cannot be changed through Master Update.
What is the difference between a Debit Note and a Purchase Return Order?
The Purchase Return Order tracks physical return of goods. The debit note records the supplier credit — usually after delivery notes confirm goods sent back.
Which payment modes auto-close on approve? Cash, Bank, and Digital Wallet debit notes auto-close when fully settled on approve. Credit debit notes stay open until settled via payment workflow.
Can I generate an e-Way Bill on a purchase debit note?
Yes. On an approved debit note, use Add Transportation then Generate EWayBill. The movement is treated as an outward purchase return to the supplier. See e-Way Bill.
Does this apply to Sale Debit Note as well?
No. e-Way Bill is available on the purchase Debit Note only, not on Sale Debit Note.
Related Topics & Videos
Related documentation
Purchase Invoice — source document for direct debit note creation.
List row actions
| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft |
| Delete | Draft |
| View | All statuses |