What is Debit Note?
A debit note is a document a buyer sends a supplier when returning goods or claiming a deduction, recording that the amount owed should go down.
Updated
Meaning
English
A debit note is a document a buyer sends a supplier when returning goods or claiming a deduction, recording that the amount owed should go down.
Roman Urdu
Debit note woh document hai jo khareedar supplier ko maal wapas karte waqt ya katauti ka dawa karte waqt bhejta hai, ke wajib raqam kam honi chahiye.
Also called debit memo, purchase return note.
Example
A medical store sends back 20 strips that arrived near expiry. It gives the distributor a debit note for their value, and its supplier balance drops once the distributor accepts the return.
How it works
The debit note is the buyer's side of a return to the supplier, while the credit note is the seller's side. Usage varies, and in Pakistani trade both words are sometimes used loosely, so what matters is the record: which goods went back, from which purchase, at what value, and whether the supplier agreed.
Purchase returns are common for near-expiry medicines, damaged cartons, wrong sizes and short-dated food. If they are not recorded, the shop pays the full supplier bill for goods it no longer has. Value returns at what the goods actually cost, including freight, not at today's price list.
In Nafaa
A purchase return in Nafaa sends goods back to the supplier, takes them out of stock (including from their batches) and lowers the supplier's balance by their landed cost.
Related terms
- Credit Note
A credit note is a document a seller issues to reduce what a buyer owes, usually because goods were returned or an invoice was overcharged.
- Purchase Return
A purchase return is goods sent back to the supplier because they were damaged, wrong, short-dated or unsold under an agreed return arrangement.
- Accounts Payable
Accounts payable is the money a business owes its suppliers for goods or services it has received but not yet paid for.