What Is Debit note | Purchase Return Entry in tallyprime

A debit note (also known as debit memo) can be issued from a buyer/ purchaser to their seller to indicate or request to return the funds due to incorrect or damaged goods received, purchase cancellation, or other specified circumstances.

In other words, a debit note basically acts as a buyer's formal request for a credit note from the seller.


Reson To Issue Debit Note

As a customer, if you receive goods that he would like to return back to the supplier, you can issue a debit note to your supplier to claim back for goods or money.

If you (buyer) purchase goods from a seller or supplier, and you would like to return the goods for any valid reason, you can issue a debit note to the supplier.


Some common scenarios when to issue a debit note:

1 Goods received are damaged or defective

2 The purchaser has been overcharged

3 The invoice value is incorrect (due to extra goods being delivered, or goods are charged at a lesser value, etc.)


Example 

1 Company A purchases goods worth $200 from Company SKB Builders.

2 Upon arrival at Company SKB Builders, the goods are damaged. Now Company SKB Builders would like to return the goods to Company Basant Pvt.

3 Company SKB Builders issues a debit note - containing all the relevant information including original purchase amount.

4 When Company Basant Pvt receives the debit note, they can review and approve the request, and issue a credit note as proof of reimbursement to Company SKB Builders.


What is the difference between credit note and debit note?

The main difference between credit note and debit note is that credit notes record money that sellers owe to a client and debit notes record money that a client owes to sellers.

When purchase is return a debit note is issued, while a credit note is issued when there is a sales return

credit note

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