Accounting Finance:Debit Notes-Creating and Entering Debit Notes

Overview

Debit notes are created when there is a price or quantity variance during the invoice matching process. Variances under $50 are generally not debited back unless an exception is made by the buyer.

Creating the Debit Note

• Click 'Purchase' on the ASW home screen
• Click 'Work with purchase orders'
• Click 'Add'
• Enter the 'Supplier number','Order type' (QV - quantity variance or PV - price variance) and 'Warehouse' = MAI and press enter

• Enter the item number (you may also use the Fictitious Item Listing)
• Enter Quantity
• Enter Unit and Price
• Enter FOC (free of charge) if wrong item shipped was not charged on invoice but item will be returned to supplier change flag to 'Y' and 'Backlog' should be 'N' (optional)
• Enter GST/Freight or any other applicable charges
• Press 'enter' and 'F12'

• Click the 'Header' tab
• Type the original invoice number on the 'Reference' field and the original PO# on the 'Ord ref'
• Type the return authorization number if you are returning/destroying something on the 'Shipment mrk'
• Press 'F1' to put a header text on your debit note, press enter twice when done to save all changes and 'F12' twice to bring you to the 'Work with purchase orders - Header View'

• Highlight the order and click 'Print'
• Change the 'Purchase orders printer queue' to 'LP05' and press enter
• Press 'F12' to go back to 'Work with purchase orders - Header View'
• Retrieve your debit note from the printer and check to see the contents and format is correct before you send it to the vendor.

Sending the Debit Note

1. Highlight the order and click 'Print'
2. Change the 'Purchase orders printer queue' to 'PRT01' and press enter
3. Pick the email/fax number where you want to send it to from the listing. If it is not on the list you can add them on the list (put a link to the adding contacts to CNS here!)
4. Enter 'TO' and 'CC' beside the email or fax debit note to selected contact, press 'F7' to save
5. Press 'F10' to send
6. Cover page for the debit note will show up on the screen and you can change the 'Subject Line' and 'Message Text'
7. Press 'enter' and 'F10' to send the document
8. Go to the 'PO distribution history' screen and enter the document number to make sure copy is retained

'Note: Warning appears "If any lines have been received, do NOT continue. 'Y'print again. 'N'=print only – press 'Y' to reprint again.' 'Do not re-send partially received debit notes or purchase orders or the system will over-ride the existing debit note/purchase order in the PO Distribution extension library.'

PO Distribution History

1. In the UWD extensions, type '12' for 'Doc Distribution', press enter
2. Type '1' for 'Document Distribution History', press enter
3. Key the Debit note number under Document ID, press enter

Note: If the destination column is blank it means it was not emailed/fax. Check the link and try again. On this screen you may also resend documents by typing 'RS' beside the contact name and pressing enter.

Confirming the Debit Note

In order to enter the debit note into the 'A/P invoice/credit entry screen', the debit needs to be confirmed (status 30) and closed (status 60). To confirm, you have to be on the 'Work with purchase orders - Header view'.

1. Click 'Rec note', press enter
2. Make sure the 'Printer queue' is 'PRT01' (no need to print out the page), press enter
3. Click 'F12' twice to go to the main menu
4. Beside 'Warehouse', click 'Reception'
5. Click 'Confirm purchase order reception notes'
6. Under Enquiries (lower left portion on your screen) click 'Purchase Orders'
7. Type the debit note number under 'Doc nbr' and press enter. You will notice your debit is now in status 30.
8. Double-click the document then double-click the line item. You will see the reception note number (remember that number)
9. Press 'F12' 3 times until you go back to the 'Reception note confirmation screen'
10. Type the reception number in the 'Reception note' box, press enter
11. Select Blank;sugg.qty'
12. If debit note has an item which is FOC (free of charge) you must change quantity to 'zero'
13. Press 'enter'

'Note: You can use the Purchase order enquiry screen to check your debit is now in status 60.'