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Purchasing → Purchasing Documents → Debit Notes.
Main Tab
The Main Tab captures the essential details that identify and control how the Debit note is processed.
Company Name - Client or company for whom the debit note is created.
Contract - Contract linked to the transaction.
Recognize Expenses in Payment Application Received - If already enabled in Invoice received, it will be automatically enabled in debit note.
Subcontractor Agreement - Links the debit note to a subcontractor agreement. The original invoice received is being reversed or adjusted.
Transaction Type - Purpose of the debit note
Goods Return - when materials, equipment, or supplies provided by a subcontractor are physically returned
Invoice Correction - This is used to correct errors in the subcontractor’s invoice without returning physical goods.
- Mutual Settlement adjustment- Used to adjust Accounts Payable balances based on mutual agreement between contractor and subcontractor.
Project - Project associated with the transaction.
Apply Retention / Ret. VAT at Retention Invoice - Apply retention and retention VAT rules as per the contract.
Basis - The original invoice received is being reversed or adjusted.
Date of Original Supply - Date when the original goods/services were supplied.
Entity Name - Legal entity issuing the debit note.
Warehouse - Inventory location involved (if applicable).
Comment - Internal notes or remarks.
Expense Tab
Item- Specific work or service line
Content-Describes the work or service performed, often linked to WBS.
Quantity (UOM)-Number of units involved, with unit of measure.
Price-Unit price for the item or service.
Discount %-Percentage discount applied to the item, if any.
Discount-Amount of discount applied.
Amount-Total value before VAT and retention; calculated as Quantity × Price minus Discount.
VAT% -Applicable VAT rate for the item.
Total (before Retention)-Total amount including VAT, before applying retention.
Retention-Percentage of the amount withheld as retention, based on contract terms.
Retention VAT-VAT component of the retention withheld.
- VAT Amount-Monetary value of VAT for the item.
- Total-Net payable amount after applying VAT and retention.
Project Task-Specific task or activity within the project that this item relates to.
Project WBS-Work Breakdown Structure code linking the item to a project task or subtask.
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Subcontract WBS-Code that links the expense to the subcontractor’s part of the project for tracking costs.
Department-The internal department responsible for the expense, usually shown with code and name.
Expense Item- The type of cost or GL account used to classify the expense.
Business Activity-The area of work the expense relates to, such as subcontracting, procurement, or internal services.
Customer Order-Links the expense to the client’s order or deliverable that it supports.
Cost Object-Optional field to connect the expense to a cost center, asset, or internal tracking unit.
Comments-Notes or references for internal use, documentation, or audits.
Deduction tab
A debit note is issued to revise or adjust the deduction amounts applied to an invoice received.
Item - Name of the item.
Content - Brief description of the item name.
Quantity - Number of units being debited or deducted.
UOM (Unit of Measure) - The unit used to measure the quantity.
Price - Price per unit of the item.
VAT % - VAT rate applied to this item.
VAT Amount - VAT calculated based on the price and quantity.
Deduction Amount - Total value of the deduction before VAT (Quantity × Price).
Settlements
This tab shows how the debit note amount is automatically applied or settled against related payments and documents:
Advance-Indicates if the debit note adjusts a previously made advance payment.
Is Deductions- Shows amounts from earlier deductions (like penalties or withholding) included in this debit note.
Document- The original invoice or document linked to this debit note.
Purchase Order-Reference to the purchase order tied to the original invoice or transaction.
Amount- The debited amount related to the original document.
Accounts Payable GL Accounts-General ledger accounts affected by the debited amount.
Additional Information tab
In. Doc#- Unique reference number for the debit note.
From Date- Date when the debit note is issued.
Department- Internal division issuing the debit note.
Responsible- Employee responsible for the transaction.
Reason-Explains the reason or justification for issuing the debit note.
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