How to Handle Partial Delivery from Supplier in ERPNext?

ERPNext Selling/CRM
1

Hello everyone,

I’m facing an issue where my supplier only delivered 20 units out of a 30-unit purchase order. My customer, however, received the 20 units.

What is the standard procedure to handle this in ERPNext? I have a few options in mind:

  1. How can I process a credit note to the supplier for the 10 missing units?
  2. How can I manage the Sales Invoice to my customer if they only paid for the 20 units they received?
  3. What’s the best way to handle this on the Purchase Invoice side?

Thank you for your help.

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Hi,

Answer to your questions solely depends on the Local Compliance Rule. In Ideal Scenario you will Issue Debit Note to the Supplier and Not Credit Note. Also, this needs to be done if the vendor has billed you for 30 qty and delivered only 20, If billing is for 20qty no need of issuing Debit Note. From the Customer Perspective, You just have to issue a sales Invoice for the qty you are delivering

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This is a common situation, and ERPNext has ways to handle it smoothly. Here’s how you can manage each part:

  1. Credit Note to Supplier for Missing 10 Units:
  • Since your supplier delivered only 20 out of 30 units, you can create a Purchase Return or a Credit Note against the supplier’s Purchase Invoice for the 10 undelivered units.
  • Alternatively, you can update the Purchase Receipt to reflect only the 20 units received, so your Purchase Invoice will be based on that quantity.
  • Then raise a Credit Note or request a refund/adjustment for the missing units.
  1. Sales Invoice for Customer Paying Only for 20 Units:
  • Your Sales Invoice should match what the customer actually received — so invoice for 20 units only.
  • If you initially created an invoice for 30 units, you can create a Sales Return or issue a Credit Note for the 10 units not delivered.
  • Make sure your delivery note and invoice quantities are aligned.
  1. Handling Purchase Invoice:
  • The Purchase Invoice should be based on the goods actually received (20 units).
  • If you already created an invoice for 30 units, you can submit a Purchase Invoice Return or Credit Note for the 10 missing units.
  • Otherwise, only create the Purchase Invoice for the 20 units you have received.

Please check out the below video for more details.

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Thank you so much, I do familiar with these. I will watch and apply this first.

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Hi Dormant
Okay — in ERPNext this scenario is basically a partial delivery situation, and you want to keep all three sides correct:

  1. Purchasing side (supplier only delivered 20 of 30)
  2. Sales side (customer only got 20 of 30)
  3. Accounts side (credit note for supplier, invoice adjustment for customer)

Here’s how you can handle it cleanly without breaking traceability.

1. On the Purchase Side (Supplier → You)

Option A – Bill Only for What You Received (Preferred)

  • When you create the Purchase Receipt, receive 20 units instead of 30.
  • Then create the Purchase Invoice from the Purchase Receipt so it only picks up 20 units.
  • The remaining 10 units on the Purchase Order will stay as “Pending” in status.
  • If the supplier never sends the remaining 10 units, close the Purchase Order so they’re not expected anymore.

Option B – Already Invoiced for 30 Units?

If you already booked a Purchase Invoice for 30:

  1. Create a Purchase Return for the missing 10 units (against that invoice).
  • This generates a Credit Note (Purchase Return Invoice) automatically in ERPNext.
  • It reduces the payable amount to the supplier.
  1. Link that credit note to the supplier payment or keep it as credit for future orders.

2. On the Sales Side (You → Customer)

If Customer Only Received 20 Units:

  • Deliver 20 units in the Delivery Note.
  • When you make the Sales Invoice from the Delivery Note, it will bill only for 20 units.
  • The Sales Order will still show 10 units pending.
  • If you won’t be delivering the rest, update the Sales Order and mark the remaining items as Closed.

If You Already Invoiced for 30 Units:

  • Create a Sales Return for 10 units (which weren’t delivered) against the Sales Invoice.
  • ERPNext will create a Credit Note (Sales Return Invoice) for the customer.
  • You can either refund or adjust in the next invoice.

3. Accounting Impact

  • Purchase Return → decreases expenses / reduces accounts payable to supplier.
  • Sales Return → decreases sales revenue / reduces accounts receivable from customer.
  • Both sides stay balanced, and you keep a proper audit trail.

Example Workflow – Recommended

  1. Purchase Order: 30 units.
  2. Purchase Receipt: 20 units.
  3. Purchase Invoice (from receipt): 20 units.
  4. Delivery Note to customer: 20 units.
  5. Sales Invoice (from delivery note): 20 units.
  6. Close remaining quantities in both PO and SO if no further delivery will happen.

Pro tip:
ERPNext’s “Billing %” and “Delivered Qty” columns on PO/SO will help you track exactly how much remains outstanding.

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Hi @invokker @Priytesh

I will request you both to avoid Chatgpt type long answers with contradictions.

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Got it :+1:, I’ll keep my replies short, simple & to the point.