Understanding Debit Notes for Purchase Returns

A debit note, also called a debit memo, is a credit that you receive from your supplier. You enter debit notes using the Standard Voucher Entry program. You enter the amount as a negative amount and use the GUI number from the supplier's original invoice as the invoice number.

When you enter a debit note for a transaction that included VAT, you must associate the original transaction and GUI number to the debit note. When you click OK after entering the debit note, the system displays the GUI/VAT Multiple Transactions form of the GUI/VAT Transactions program and validates that:

• The amount of the debit note does not exceed the amount of the original transaction.

• The original transaction and the debit note have the same currency code.

• The original transaction and the debit note are for the same supplier.

Important: You must take care to enter a debit note for a purchase return transaction. The system enables you to enter the GUI/VAT return information as a stand-alone transaction using only the GUI/VAT Transactions program. However, if you enter the purchase return transaction without accessing the GUI/VAT Transactions program from the Standard Voucher Entry program, you do not associate the GUI/VAT purchase return transaction to a debit note. Failure to associate a debit note to the GUI/VAT purchase return information causes data integrity issues in your F0411 and F75T004 tables.