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Debit Note

Document issued to record and notify a purchase return.

In real-world business scenarios, not every purchase goes as planned. Items may arrive damaged, excess stock might be delivered, or products may not meet the required specifications. To formally record and notify such returns to suppliers, businesses issue a Debit Note.
With PrismERP, managing purchase returns and issuing Debit Notes becomes simple, accurate, and fully traceable. The Debit Note module is designed to help businesses maintain transparency with vendors, ensure accurate accounting, and keep inventory records aligned with physical stock levels.

What is a Debit Note?​

A Debit Note is a commercial document issued by a buyer to a supplier, indicating that the buyer is debiting the supplier’s account for returned goods or for adjustments related to previous purchases. It acts as a formal request for financial rectification and is typically issued in response to:

  • Goods that are damaged or defective
  • Incorrect quantity delivered
  • Wrong items received
  • Over-invoicing or pricing errors
  • Cancelled purchase orders

In accounting, a Debit Note reduces the Accounts Payable balance and helps maintain accurate vendor ledgers.

How PrismERP Handles Debit Notes​

PrismERP automates and streamlines the process of issuing and managing Debit Notes. When a purchase return is recorded in the system, the related Debit Note can be generated directly from the transaction, ensuring all financial and inventory updates are accurately reflected across the ERP platform.
Users can also create custom Debit Notes manually for specific cases, with full control over item selection, value, taxes, and narration.

Key Features of Debit Note in PrismERP​

Generate Debit Notes directly from goods return transactions to ensure accuracy and reduce manual entry.

Automatic Ledger Updates​

The system automatically adjusts the vendor’s balance in Accounts Payable and updates the General Ledger.

Inventory Synchronization​

Returned items are deducted from the stock in real-time, ensuring accurate inventory records.

VAT and Tax Adjustments​

Automatically calculates and adjusts VAT or applicable taxes based on return value and local tax rules (e.g., Bangladesh VAT law).

Audit-Ready with Full History​

Maintain a complete history of all debit notes issued, with date, reason, approval status, and user activity logs.

Customizable Templates​

Configure debit note formats based on business needs, including narration, item details, and currency settings.

Multi-Currency Support​

Handle supplier returns in foreign currencies with real-time exchange rate adjustments.

Approval Workflow​

Set up role-based approval workflows to ensure internal control and prevent unauthorized returns or adjustments.

Why Is Debit Note Important for Businesses?​

The Debit Note feature is not just a formality—it’s a critical part of maintaining financial accuracy, improving supplier relationships, and ensuring audit compliance. Without a proper Debit Note system, companies risk:

  • Misstated vendor balances
  • Inaccurate inventory valuation
  • Disputes with suppliers
  • Delayed financial closing
  • Compromised audit readiness

Using Debit Notes correctly helps businesses stay in control of their accounts payable, inventory, and overall financial health.

Seamless Integration Across ERP Modules​

The Debit Note feature in PrismERP works in coordination with:

  • Purchase Management
  • Inventory Control
  • Accounts Payable
  • General Ledger

This ensures that every return or adjustment is reflected accurately and consistently across your entire ERP system.

Who Can Benefit from PrismERP’s Debit Note Feature?​

  • Retailers managing frequent supplier returns
  • Manufacturers dealing with raw material rejections
  • Distributors & Wholesalers handling bulk product movements
  • NGOs & Donor-Funded Projects requiring clear financial documentation
  • Government & Public Sector Units maintaining compliance with audit and regulatory frameworks

Enhance Return Management with PrismERP’s Debit Note System​

A structured and transparent return process builds trust with suppliers and ensures accounting accuracy.
With PrismERP Debit Note, you can streamline purchase returns, reduce disputes, and maintain clean financial records.
Request a Demo to see how it works or Talk to Our Experts today!