Vendor Debit Notes
A Vendor Debit Note records an extra charge a vendor adds to a purchase that's already been billed: freight, a price difference, an amount that was under-billed, or any other follow-up charge. As soon as you save it, AdmCloud calculates its taxes and withholdings, and posts the accounting entry that increases what you owe the vendor, the same way a Vendor Bill would.
You can create it from scratch or link it to the affected Vendor Bill, so there's a record of which purchase the charge belongs to. Unlike a Vendor Credit Note, a Debit Note isn't "applied" to an open document — its accounting entry posts directly when you save it and it becomes a new open payable balance.
What is it and what is it for?
Each Vendor Debit Note states who's charging you (the vendor or related party), the vendor's document reference, the currency and exchange rate, and the detail of items, services or ledger accounts that make up the amount owed. It can optionally reference the affected Vendor Bill (the purchase the charge belongs to).
It's the counterpart of the Credit Note: instead of reducing what you owe the vendor, a Debit Note increases it. It's useful when the vendor bills you for something that wasn't on the original bill, or when you discover a purchase was billed for less than it should have been and need to correct it without touching the original document.
Screens in this area
| Screen | What it does |
|---|---|
| List | Every vendor debit note, with customizable columns and direct access to the Report from its own menu. |
| Create / Edit | A form with the debit note's general data (vendor, reference, currency, affected bill), an item/service table with taxes and withholdings, and a file attachments tab. |
| Details | A read-only view with buttons for New, Edit, Duplicate, going to the Accounting Entry, Print, Void or Delete depending on your privilege. |
| A printable or PDF format of the debit note, with the vendor's data, the item detail and the totals. |
How to record a debit note, step by step
- Open it from the list with New, depending on whether it's a standalone charge or a correction to an already-recorded purchase.
- Confirm the general data. The vendor is required, and the reference (the number the vendor gave you for this charge) can't repeat for the same vendor and subsidiary. If your company uses multiple currencies, confirm the exchange rate (it must be greater than zero).
- Link the affected bill if the charge corresponds to an already-recorded purchase; that bill must belong to the same vendor and currency as the debit note, and can't be voided.
- Add the items, services or ledger-account lines that make up the charge, with their quantity, price, tax and, if applicable, withholding, division, department, class, location or project depending on the modules active for your company.
- Save the document. AdmCloud immediately posts the entry (debiting the expense or ledger account you indicated and crediting Accounts Payable) and leaves the amount as an open payable balance to the vendor, just like a bill.
Key fields
| Field | What it's for |
|---|---|
| Number | AdmCloud's automatic internal numbering; you can't repeat or change it once the debit note is created. |
| Vendor / Related Party | Who's charging you; required, and can't be voided or inactive. |
| Reference | The vendor's charge document number; it can't repeat for the same vendor and subsidiary. |
| Document Date | Defaults to today; it must fall within an open Accounts Payable period. |
| Affected Bill | The Vendor Bill (or expense) the charge corresponds to; optional, but must belong to the same vendor and currency, and can't be voided. |
| Currency and Exchange Rate | The currency the vendor issued the charge in; the exchange rate must be greater than zero, and defaults to 1 if your company operates in a single currency. |
| Subsidiary | Required only if your plan has subsidiaries enabled. |
| Location | Filled in automatically if you have a default location configured; may be required depending on your active modules. |
| Items / Services (lines) | Item or service, quantity, unit of measure, price, discount and tax; optionally lot, attributes, ledger account, division, department, class, location or project depending on the modules active for your company. |
| Tax Withholding | A group or specific withholdings per line; only shown depending on the withholding mode configured for your company. |
| NCF / Fiscal Receipt Number | Generated automatically on save using the configured Debit Note fiscal sequence; only applies in countries with this requirement. |
| Attachments | Supporting proof of the charge (vendor communication, evidence of the extra charge, etc.). |
Validations when saving
- The vendor is required and can't be voided or inactive.
- The reference can't repeat for the same vendor and subsidiary (checked against that vendor's Bills, Receptions, other Debit Notes and Expenses).
- You must add at least one valid line, either an item/service line or a ledger-account line.
- The exchange rate must be greater than zero.
- The Accounts Payable period matching the date must be open.
- Each line's discount must be between 0% and 100%, and negative prices aren't allowed if the quantity is greater than zero.
- If the line's item requires a lot, attributes or a customs declaration, you must enter it.
- If you link an Affected Bill, it must belong to the same vendor, the same subsidiary and the same currency as the debit note, and can't be voided.
- If the Affected Bill has an electronic signature, AdmCloud validates that source document against your e-invoicing configuration before saving.
- In Ecuador, the debit note additionally requires an Affected Bill, an Expense Type and a Transaction Type, plus a valid Payment Method.
- You can't change the document number when editing, nor edit protected fields on a note that's already been electronically signed if your e-invoicing configuration prevents it.
Deleting or voiding
You can delete a debit note only if it has no dependent documents (for example, if it's already applied on a payment, or has an electronic signature on record); in those cases, AdmCloud blocks the deletion and you must void it instead. Voiding keeps the document and its accounting entry for audit purposes, but marks it as cancelled and it no longer affects the vendor's balance.
Reports
From the list's Reports menu you can generate a vendor debit note report, filterable by date, vendor(s), subsidiary, location, department, division, item class, currency and whether voided documents are included.
Availability, permissions and conditions
- Access is controlled by the "Vendor Debit Notes" permission, with separate levels for browsing, adding, editing, deleting and voiding.
- Tax withholdings are only shown depending on the mode configured in your company's Preferences.
- The NCF / Fiscal Receipt Number field only applies in countries with this requirement (for example, the Dominican Republic) and depends on the Debit Note fiscal sequence configured for your company.
- In Ecuador, the debit note requires additional fields (Affected Bill, Expense Type, Transaction Type and Payment Method) due to local fiscal requirements.
- The lot, attribute, customs declaration, division, department, item class, location and project fields only show up if your company has those modules active.
- Subsidiary is only required if your plan has subsidiaries enabled.
Tips and common pitfalls
Not sure whether to use a Debit Note or a Bill? Use a Debit Note when the extra charge directly relates to a purchase that's already been billed (for example, freight that arrived later); if it's a brand-new purchase, record a Vendor Bill instead.
Won't the system let you delete the debit note? That's because it already has a payment applied or other dependent documents; use Void instead of deleting.
Isn't this the same as a Credit Note? No: a Credit Note reduces what you owe the vendor, while a Debit Note increases it. If you need to reduce a billed amount, use a Credit Note instead.