Purchasing & Inbound LogisticsOptional Module

Supplier Credit & Debit Notes

1. Overview & Purpose

What are Supplier Credit & Debit Notes?

Supplier Credit & Debit Notes governs financial adjustments between enterprise buyers and external suppliers. Credit notes reduce existing Accounts Payable liabilities (e.g. from returns), while Debit notes formalize claims for vendor reimbursement or price corrections.

Menu Location:Purchase > Credit & Debit Notes

2. When to Use Credit & Debit Notes

RMA Return Settlement via Accounts Payable Reduction (Credit Note)

Vendor Unilever formally acknowledges receipt of 20 damaged returned cartons and issues a credit memorandum of Rp 6.000.000 to offset open invoices.

Recommended Action:Issue a Supplier Credit Note bound to the completed Purchase Return; the ERP automatically reduces the outstanding Accounts Payable liability for that vendor.

Billing Price Overcharge Claim (Debit Note)

A supplier invoiced items at Rp 125.000/unit instead of the contractually agreed PO cost of Rp 115.000/unit across 100 units, overcharging the company by Rp 1.000.000.

Recommended Action:Create a Supplier Debit Note citing the PO and Invoice number, formally demanding a Rp 1.000.000 debit correction on the supplier next monthly statement.

Manufacturer Volume Rebate & Co-Op Advertising Allowances

A brand principal awards the enterprise a Rp 15.000.000 quarterly volume rebate for exceeding agreed sales distribution milestones.

Recommended Action:Record a Supplier Credit Note categorized under Vendor Rebates to reduce upcoming Accounts Payable obligations without creating fictitious inventory returns.

Automated General Ledger Double-Entry Posting

Ensuring financial balance sheet trade liabilities synchronize accurately without accountants performing manual compound journal entries.

Recommended Action:Approving the credit note automatically generates a journal entry (Debiting Accounts Payable and Crediting Purchase Return Cleared / Expense accounts) in real time.

Damaged Goods Settlement Discount (Without Physical Return)

Supplier agrees to grant a 30% discount on slightly bruised fruit or scuffed packaging rather than incurring return shipping expenses.

Recommended Action:Issue a Credit Note referencing the supplier invoice without linking a Purchase Return, directly reducing payable liability for that batch.

3. Data Dictionary & Fields

Schema structure for the supplier_credit_notes and supplier_debit_notes adjustment tables:

Field / Column	Input Type	Requirement	Description & Operational Guide
creditNoteNumber / debitNoteNumber	STRING(50)	Required	System unique adjustment note code (e.g. SCN-20260522-001 or SDN-20260522-001).
purchaseReturnId	BIGINT (FK)	Optional	Reference to purchase return document when settling physical reverse logistics.
supplierId	BIGINT (FK)	Required	Vendor receiving or issuing the balance adjustment.
branchId	BIGINT (FK)	Required	Operating branch holding the liability relationship.
issueDate	DATE	Required	Official issuance or acceptance date of the financial adjustment note.
amount	DECIMAL(18,4)	Required	Monetary adjustment figure credited or debited against vendor ledger.
reason	TEXT	Required	Mandatory commercial justification explaining the balance adjustment.
status	ENUM	Required	State: DRAFT, PENDING, SUBMITTED, APPROVED, POSTED, CANCELLED.

4. Interface Preview

Supplier Notes ledger displaying credit memos, debit claims, vendor balances, and accounting journal sync status.

inventories-web

Menu Location:Route: /admin/purchase/supplier-credit-notes

Screen Preview: Supplier Credit & Debit Notes Interface

Visual interface illustration and control layout for menu Route: /admin/purchase/supplier-credit-notes

1Add Credit / Debit Note2Purchase Return Cross-Link3Adjustment Amount Card4Post to General Ledger

Supplier balance adjustment grid showing credit/debit document numbers, attached return references, adjustment totals, and journal posting status.

5. Issuing Supplier Credit Notes

Open Supplier Notes Console

Navigate to Purchase > Supplier Credit Notes from sidebar.

Choose Note Type

Select Credit Note for vendor liability reduction or Debit Note for claims.

Select Supplier & Reference

Choose vendor and attach related Purchase Return or Purchase Invoice if applicable.

Input Amount & Commercial Reason

Enter net adjustment currency amount and mandatory explanatory justification.

Submit for Finance Approval

Click Submit to route note to senior accountant for journal validation.

6. Issuing Supplier Debit Notes

Accounting Verification

Finance manager inspects attached supplier credit memorandum.

Approve & Post Journal

Click Post. The system generates general ledger entries adjusting AP and expense accounts.

7. Ledger Posting & Settlement

Automatic Journal Generation

Approving a supplier credit note automatically generates a compound journal entry in Accounting, reducing Accounts Payable liability without manual bookkeeping intervention.

Cancellation Controls

Unposted notes can be cancelled; posted notes require opposite offsetting entries.

8. Cross-Module Impact

Target Subsystem	Relational & Transactional Effect
General Ledger Accounting	Debits Accounts Payable liability and credits Purchase Returns / Expense accounts.
Purchase Invoices (AP)	Reduces outstanding unpaid balance on open vendor bills during payment allocation.
Purchase Returns	Closes financial settlement lifecycle for completed reverse logistics returns.

Operational Best Practices

Always attach the supplier official signed credit memorandum before posting the note.
Apply credit notes against oldest open invoices during payment voucher preparation.