Create Debit Notes for Supplier Returns and Adjustments

Learn how to create and approve Debit Notes in Kuvera Arc to handle supplier returns, pricing corrections, and purchase bill adjustments accurately.

A Debit Note is a formal document used to reduce or correct the amount owed to a supplier. In Kuvera Arc, create a Debit Note when goods are returned, damaged items need to be adjusted, quantities do not match the bill, or pricing errors need correction against an existing Purchase Bill.

When to use a Debit Note

Use a Debit Note to adjust supplier payable records after a Purchase Bill has been created.

Return purchased goods

Record goods returned to a supplier after billing.

Adjust damaged items

Remove damaged or rejected items that should not be billed.

Correct quantity mismatch

Adjust cases where billed quantity does not match the actual received or accepted quantity.

Fix pricing errors

Correct pricing errors discovered after a Purchase Bill was raised.

Update supplier payables

Maintain accurate supplier payable balances after post-billing changes.

A Debit Note must be linked to an existing Purchase Bill. The linked bill provides supplier information, purchased products, pricing, discounts, and tax calculations.

Debit Note workflow

1. Select the supplier and Purchase Bill

   Choose the supplier and the specific Purchase Bill that requires adjustment.

   Debit Note supplier and Purchase Bill fields

2. Review auto-loaded items

   Kuvera Arc loads purchased items from the selected bill into the debit note.

3. Enter the adjustment reason

   Provide a clear reason for the debit note for financial traceability and audit purposes.

4. Adjust quantities or remove items

   Edit item quantities to reflect what is being returned or corrected. Remove items that should not be included.

5. Save or submit

   Save as Draft to finalize later, or click Save Debit Note to submit for approval.

6. Approval review

   An authorized user reviews the submitted debit note and approves it to confirm the financial adjustment.

Debit Note statuses

Draft

The debit note has been created but not submitted. Fields remain editable.

Pending

The debit note has been submitted and is waiting for review by an authorized user. Editing is usually restricted.

Approved

The debit note has been verified and finalized. Financial adjustments are confirmed, the supplier payable balance is updated, and the record becomes read-only.

Void

The debit note has been cancelled and excluded from active workflows. The record remains available for historical reference and audit.

Approved debit notes are read-only to protect financial accuracy. Confirm all quantities, items, and amounts before approval.

Access Debit Notes

Debit Note in the Purchase sidebar

1. Open Purchase

   Go to the left navigation panel and click Purchase.

2. Select Debit Note

   Click Debit Note from the Purchase menu.

The Debit Note Listing Page opens. Use status tabs to filter by All, Approved, Draft, or Pending.

Debit Note listing

Debit Note Listing Page

Debit Number

Unique system-assigned debit note number.

Supplier Name

Supplier linked to the debit note.

Debit Status

Current workflow status of the debit note.

Total Amount

Final adjusted debit note amount.

Created On

Date the debit note was created.

Option

Opens the Debit Note Details page.

The listing page provides visibility into debit note records. It does not directly modify debit note data.

Create a Debit Note

1. Open Debit Note

   Go to Purchase > Debit Note.

2. Click New Debit Note

   Click New Debit Note.

   New Debit Note button

3. Select the supplier

   Choose the supplier associated with the purchase you are adjusting.

4. Select the Purchase Bill ID

   Select the Purchase Bill being corrected. Kuvera Arc loads related products, supplier details, and financial values from the bill.

   Purchase Bill selected on Debit Note form

5. Enter the adjustment reason

   Type a clear reason, such as Goods returned due to damage or Quantity billed exceeds quantity received.

6. Review and adjust items

   Review the product table. Adjust quantities for returns or corrections, and remove items not included in the adjustment.

7. Save the debit note

   Click Save as Draft to save without submitting, or Save Debit Note to submit for approval.

Debit Note fields

Required fields

Select Supplier — Supplier linked to the debit note adjustment.

Purchase Bill ID — Existing Purchase Bill being corrected or returned against.

Reason — Mandatory explanation of why the adjustment is being made.

Optional fields

Date — Date of the debit note. Defaults to today if left blank.

Reference Number — Internal or external tracking reference for the adjustment.

Item adjustment fields

Product Name — Loaded from the selected Purchase Bill and not editable.

Quantity — Editable quantity being returned or corrected.

Rate per Item — Loaded from the bill and not editable.

Discount — Controlled by the original bill and product configuration.

Total Price — Recalculated automatically based on adjusted quantity.

Quantity is the primary editable field in a Debit Note. Use it to define the exact number of units being returned or corrected.

Adjust debit note items

When the Purchase Bill is selected, Kuvera Arc loads the related products and values automatically.

Debit Note item table

Adjust quantity

Set the quantity to the number of units being returned or corrected.

Remove items

Exclude products that are not part of the adjustment.

Recalculate totals

Totals update automatically when quantities or included items change.

Preserve bill rates

Rates and discount settings come from the linked Purchase Bill.

Discountable products

If discount is enabled for the product, the discount carries over from the original bill and is reflected in the recalculated totals.

Non-discountable products

If discount is disabled for the product, the discount field remains inactive and cannot be modified.

Debit Note totals

Kuvera Arc recalculates debit totals automatically as quantities and included items change.

Subtotal

Sum of adjusted line totals before discounts.

Discount

Total discounts applied based on original bill settings.

Taxable total

Adjusted amount subject to VAT.

Non-taxable total

Adjusted amount not subject to VAT.

VAT total

Recalculated tax based on adjusted values.

Total amount

Final debit note value after adjustments.

A Debit Note must be linked to a Purchase Bill before it can be saved. This keeps every adjustment traceable to an existing supplier transaction.

View Debit Note details

1. Open Debit Note

   Go to Purchase > Debit Note.

2. Find the record

   Locate the debit note in the listing table using status tabs or supplier name search.

3. Open details

   Click the Option field on the debit note row.

   Open Debit Note details

Debit Note Details page

Basic details

Debit note ID, creation date, creator, supplier name, linked Purchase Bill, reason, and original bill amount.

Adjustment details

Product name, rate, adjusted quantity, discount, line total, subtotal, taxable total, VAT, and total adjusted amount.

The Debit Note Details page centralizes supplier details, item-level corrections, financial totals, and workflow status.

Debit Note actions

Actions are available from the Debit Note Details page based on status and permissions.

Edit Debit Note

Modify debit note details when editing is allowed, usually in Draft or Pending status. Changes are revalidated before saving.

Duplicate Debit Note

Creates a copy of the current debit note as a new Draft.

Supplier details, item selections, and adjustment details are copied. A new debit note number is assigned, and the original note remains unchanged.

Approve Debit Note

Finalizes the debit note adjustment.

When approved:

• Status changes to Approved
• Supplier payable adjustment is confirmed
• The debit note becomes read-only

Void Debit Note

Cancels the debit note and removes it from active financial processing.

When voiding:

• You must provide a reason
• The debit note is excluded from financial adjustments
• The record remains visible for audit history
• A voided debit note cannot be reused or edited

Approval and void actions are controlled by user roles, document status, and permissions. All action-based changes are tracked for audit purposes.

Filter debit notes

Use Filter Data to narrow debit note records.

Debit Note filter panel

Debit Note Number

Find a specific debit note by its number.

Creation Date

Filter by the date the debit note was created.

Minimum Amount

Show debit notes with totals at or above this value.

Maximum Amount

Show debit notes with totals at or below this value.

Combine filters to refine results. Click Apply Filter to update the listing, or Cancel to close without applying changes.

Export debit notes

Use Export Data to download debit note records. Exporting does not affect workflow status or supplier financial data.

Export Debit Notes panel

Full Export

Exports all debit note records in the system, regardless of active filters.

Current View Export

Exports only the debit notes currently visible in the listing, including filtered results.

XLSX

Export debit notes for spreadsheet use.

PDF

Export debit notes for document sharing.

CSV

Export debit notes for data processing or integrations.

Exports reflect current records and any active filters at the time of export.