Debit notes

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When you order goods or services from your supplier and you have already registered a supplier invoice, you may need to reduce your company's debt to the supplier. For example, your supplier agreed to give you an extra discount or you request a goods return because there was a supply of damaged goods.

In this scenario, your supplier issues a credit note document to your company and, once you receive it, you register a debit note document in 1C:Drive. This document serves as the evidence of the reduction in your purchases.

In the debit note, you list the products, quantities, and agreed prices for products or services that your company ordered from the supplier, but your company returned or did not receive them. Also, you can use a debit note if you simply want to adjust the debt amount provided that the supplier confirmed this.

Typically, you state the reason for the debit note and refer to the original supplier invoice.

You can get the credit from the supplier as reduction of your debt to their company, or you can apply the credit to the future purchases.

Viewing debit notes

To view the list of debit notes:

• Click Purchases > Debit notes.

Debit note fields

A debit note has the following fields:

• Counterparty (required). The supplier you register the debit note for.
• Contract (required). The supplier's contract that governs the registration of the debit note.
• Base document. The supplier invoice or the goods return where you want to apply the debit note. This field is only available if the Operation field of the debit note is set to "Discount received", "Purchase return", or "Drop shipping".
• Adjusted amount, incl. tax. The money amount to reduce your company's debt to the supplier.

  This field is only available if the Operation field of the debit note is set to "Accounts payable adjustments" or "Discount received".

• Total adjustment. The money amount to reduce your company's debt to the supplier due to return of purchased products. It is automatically filled according to the content of the base document. You cannot edit it.

  This field is only available if the Operation field of the debit note is set to "Purchase return" or "Drop shipping".

• Number. A unique debit note number. It helps you identify the debit note.
• Date. The date and time when the debit note was registered.
• Operation. The debit note type. It can have one of the following values:
  • Accounts payable adjustments. Reduces your company's debt to the supplier with a reason rather than a discount or a purchase return. For instance, the supplier delayed the goods delivery and wants to compensate this to your company.
  • Discount received. Applies a discount to the purchase after you have already registered a supplier invoice. For instance, the supplier wants to give your company a fast payment bonus for the supplier invoice.
  • Purchase return. The debit note initiates a goods return document or is based on a goods return document. A debit note of this type itself does not assume physical transfer of goods in the inventory. To register a goods transfer, use a separate goods return document.
  • Drop shipping. Similar to Purchase return but used for drop shipped products.
• Company (required). Your company that registers the debit note.
• Warehouse. Your company's warehouse from which you return the goods. This field is available only if the Purchase return flow option is set to "Debit note document posts all entries, including inventory."
• GL account (required). The GL account for recording the adjusted amount. Typically, it is a contra expense account.
• Project / Project phase. A project or project phase that the transaction lines recorded by this document are related to.
  The field value is populated to documents generated from this document if they have the Project / Project phase field.
  The field value can be used for recording and tracking income and expenses by project or project phase. This applies if the Track income and expenses by project phase checkbox is selected in the project settings.
  To learn how to select a project or project phase, see Project selection tool.

  The Project / Project phase field is available if the Project-based accounting checkbox is selected in Settings > Company.

  The field can be shown on one or several debit note's tabs:

  Field position	Field position conditions
  On the Additional information tab	The Project / Project phase field position is set to On Additional information tab in the debit note settings (More actions > Settings).
  On the Amount allocation tab	The Project / Project phase field position is set to In tabular section in the debit note settings (More actions > Settings). In the debit note, Operation is Discount received or Accounts payable adjustments.
  On the Products tab	The Project / Project phase field position is set to In tabular section in the debit note settings (More actions > Settings). In the debit note, Operation is Purchase return or Drop shipping.

Creating debit notes

To create a debit note:

1. Do any of the following:
   • Click Purchases > Debit notes and then click Create.
   • Open a supplier invoice or goods return and click Generate > Debit note.
2. Fill the debit note fields.

   For more information, see Debit note fields.

3. If the debit note has the "Purchase return" operation type, specify the purchase return products.

   For more information, see Specifying return products.

4. If the debit note has the "Accounts payable adjustments" or "Discount received" operation type, specify the allowances or discounts.

   For more information, see Specifying allowances or discounts.

5. Specify the debit note amount allocation.

   For more information, see Specifying debit note amount allocation.

6. Specify the debit note reason.

   For more information, see Specifying debit note reason.

7. Click Post.

Specifying return products

When you register a debit note for a purchase return reason, you select "Purchase return" in the debit note's Operation field. For more information, see Debit note fields.

For such a debit note, you also have to specify the products your company returns to the supplier and the adjusted amount. To do this:

1. Open the debit note.
2. Click Populate from base document.

   1C:Drive populates the table on the Products tab according to the supplier invoice or goods return document you specified in the Basis field.

3. On the Products tab, for each returned product, do the following:
   1. If the debit note is based on a supplier invoice, in the Return quantity column, specify the returned quantity. 1C:Drive calculates the value of the Adjusted amount column.
   2. If the debit note is based on a goods return, in the Adjusted amount column, specify the amount you want to subtract from your company's debt.

1C:Drive calculates the resulting adjusted amount of the debit note and displays it in the Adjusted amount field.

Specifying allowances or discounts

When you register a debit note for the reason of discounts or allowances for your company, you select "Discount received" or "Accounts payable adjustments" in the debit note's Operation field. For more information, see Debit note fields.

For such a debit note, you need to specify one or several supplier invoice documents to apply the debt reduction to and the amount of the allowance or discount. To do this:

1. Open the debit note.
2. Click the Debited transactions tab.
3. Do any of the following:
   • To populate the table on the Debited transactions tab with appropriate basis documents automatically, click Fill by period, specify the period when the documents were issued, and click Select.
   • To select a particular basis document, click Select, click Supplier invoice, click the desired document, and click Select.

     Also, you can add, edit, or delete table records.

4. In the Adjustment amount field, specify the amount of the allowance or discount.

Specifying debit note amount allocation

When you register a debit note for a supplier, you need to decide how to allocate the adjusted amount. Mainly, it depends on whether your company has performed a payment to the supplier for the basis invoice before you register the debit note.

If there was a payment to the supplier, reduce your company's debt for the invoice by the debit note's amount. If there was no payment to the supplier so far, allocate the amount as an advance payment.

To allocate the amount of a debit note:

1. Open the debit note.
2. Click the Amount allocation tab.
3. Click Fill in.

   1C:Drive populates the table on the Amount allocation tab according to the payments your company made for the basis invoice.

4. To allocate the amount as an advance payment, select the Is advance checkbox for the allocated amount record.
5. If necessary, in the Clearing amount column, change the offset amount for the allocated amount record.
6. If necessary, in the Document column, select another invoice for the allocated amount record.

   There is no need to specify the document for the offset amount if you specified that you allocate it as an advance payment.

7. If necessary, in the Order column, specify the purchase order for the allocated amount record.

   Also, you can add, edit, or delete table records.

Specifying debit note reason

For each debit note, you have to specify the reason why you registered it. To do this:

1. Open the debit note.
2. Click the Additional Information tab.
3. In the Reason for correction field, specify the brief description of the reason.
4. If necessary, in the Note field, specify a detailed description of the reason.

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