You can apply debit note credits to offset and reconcile payments for purchases from the same vendor.
Let’s walk through the process.
Example Scenario:
Suppose you made a purchase worth ₹1,53,000 from a vendor. You’ve recorded this as a Purchase Invoice in Refrens, as shown below:
After receiving the invoice, you discover that some items were either defective or missing. To address this, you’ll need to create a debit note for the returned or faulty items.
Step 1: Creating a Debit Note
In this case, let’s assume that out of 100 items, 20 were defective. You’ve returned these items and created a debit note for the value of the defective goods:
Step 2: Utilizing the Debit Note Amount to Reconcile the Purchase Invoice
Once your debit note is created, you can utilize the debit note amount to reconcile the purchase invoice you created.
Firstly, go to the purchase invoice you created, and click on “Record Payment” as shown below:
As you see above, While recording the payment, you’ll see an option called “Available Credits”. This shows the total credit you have available with the vendor, which, in this case, is ₹30,680 - the value of the debit note you just created.
To utilize this, just click on the “Use Credit” option as shown below:
You can choose how much of the available credit you want to use and click submit.
Once done, you will see that your purchase Invoice has been marked as partly paid:
As you can see, the utilized due amount will be reflected in the purchase invoice. You can check the same under the “Invoice Payment Records” section as well.
Step 3: Recording Additional Payments
For setting the rest of the payment, you can simply click on the “Record Payment” option to record the details of any further payments made:
That’s it!
If you need further assistance or have questions, feel free to reach out to us at care@refrens.com or via our live chat support.