Using Debit Note As a Form of Payment?

1

I have a scenario which is probably typical and yet I cannot seem to figure out how to use ERPNext for a simple transaction.

We purchased some goods from a vendor for $1000. We then returned the goods and issued them a Debit Note. Then we later purchased some other goods for $1500 which they invoiced us for $1500. I want to use the debit note ($1000) to only pay them the difference of $500.

I created the Purchase Invoice for the $1500 and assumed I could go to “ADVANCED PAYMENTS” and find the $1000 debit note balance there. This is not the case. My question is how can I use the debit note to offset the amount I am paying them on the future invoices? I cannot find this scenario anywhere in the manuals nor the group discussions. How do other people apply debit notes against future invoices with ERPNext?

Any help is greatly appreciated!

2

Not sure about the implementation in ERPNext but debit note does not consitute any title of payment - debit note needs to be followed by a credit note from a supplier. A credit note can be usually matched with an open bill. In your case it would be the 1500 bill, applying a credit note would leave it at 500 due.

Hope it helps.

3

Perhaps confirm this expected behaviour Debit Note re the accounts affected and reports, as they relate to your case?

4

you can use the payment reconciliation for this. But not on the advanced payment.

5

Hi I did the instruction on this manual here on how to process a debit note.

It says to create the following: (This is for a scenario that I purchase something then decided to return/cancel the purchase)

  1. Create Purchase Invoice
  2. Create payment entry for the above Purchase Invoice.
  3. Create Debit Note to record a canceled paid purchase invoice. (and to be submitted to the supplier to bill them)
  4. Create payment entry (as received type) on the original invoice.

So I smoothly did the steps. However, upon checking the debit note was floating as an open payment which should not because I already received the returned payment from the supplier and I will not use the debit note to other next invoice since the payment was returned to me.

How can I close the debit note? I am not sure if I did sometimes wrong?