Supplier Credits

A supplier credit (debit note) reduces what you owe a supplier. Use it when a supplier overcharged you, you returned goods, a service was not delivered, or you agreed a discount after the bill. Supplier credits live under Purchases → Supplier Credits.

Create a supplier credit

1. On Purchases → Supplier Credits, click New supplier credit.
2. Under Credit Details, choose the Supplier, a Reference (for example the supplier's credit note number or the original bill), the Issue Date and the Currency.
3. Add Line Items with the account and VAT that the original bill used, so the credit reverses the right expense and Input VAT.
4. Add the reason in Notes and save. The credit is a Draft with a number such as DN-00001.

Only drafts can be edited.

Send (post) it

Click Send on the credit, then email it to the supplier or choose Mark as Sent. Either way it goes into your books: debit Accounts Payable, credit the line accounts and Input VAT. The status becomes Sent.

Use it against a bill

1. Open the credit and click Use against a bill.
2. Choose one of the supplier's outstanding bills and the amount.
3. Click Reduce the bill.

The bill's amount due drops by that amount. The credit shows Total, Used and Remaining; when nothing remains it shows as Used.

If the supplier refunds you in cash instead, match the refund on the bank line to the supplier.

Cancel a supplier credit

Cancel supplier credit stops the credit being used against any bill. You cannot undo this.

Find supplier credits

Filter by Draft, Sent, Used or Cancelled, search, limit to a date range, and sort by date, amount or number.

MCP tools

list_debit_notes, get_debit_note, create_debit_note, update_debit_note, apply_debit_note, void_debit_note.