Support Suite

A Debit Memo is basically a credit that you are giving to yourself from a specific vendor due to a previous incident, such as broken material received or simply a vendor over billed you. In short, It is a financial transaction that takes money away from a bill.

To reach Debit memo, go to Accounting > account payable

A new window will appear, Click Enter Bills

You can either choose to click on Debit memo on top,    or stay on “Bill” creation option, and check “Create Debit Memo” to help automate the process.

Note that the first check mark is to create a credit memo based on adjusted amount of any kind (Depending on the situation, for example a vendor has overbilled you, you will add the adjustment amount in the relative field, and then check the first debit memo mark), and the second checkmark is to create a credit memo based on broken items (they should be marked as broken in their relative expense account).

Now click Debit memo

We will then look for the vendor whom we want to issue a debit memo, we will type the first few letters of the vendor name then click on the search tool. Then select the vendor from the search results.

After which we click search on the upper right

We then fill in those fields If there was any reference number, a specific warehouse, or any additional information related to this debit to add.

Now we select the PO or Order that we want to pay, we click on the checkmark next to that order to mark it.

Now we assign the adjustments.

Let us assume that there have been missing items in that order which we have not received, or the vendor simply did not send them. We will fill in the missing items amount under the missing items adjustments, however, I will add it as a negative. As it is deducted from the vendor’s total.

It should look like this:

Notice that the amount I have added to the missing adjustments is reflecting on the “Missing Items Adjustments” on the right pane as it will be deducted, and reflecting on the total.

Now select the expense account associated with this memo:

Click Create Debit memo on the lower right corner of the screen:

You should receive the below notification:

Now it’s time to apply this credit or any other previously created credits to that bill. I will click on “Apply credit”. A new window will appear.

This will allow me to select which credit to apply to that bill, I will choose one or multiple credits, then click okay, I will see the credit applied reflected:

After which the “create credit memo” will become “Create Bill” I click create bill on the lower right corner of the screen, and I should get a notification that my bill has been created: