Invoice vs Debit Note

ERPNext Accounting
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We try to follow accounting practices of the ACCA (Association of …Certified Accountants, blablabla)

They suggest the three financial documents representing one order

  • Invoice
  • Debit Note (if things are to be added)
  • Credit Note (if things are being reduced/discounted)

logically a Debit Note is the same as an Invoice to some extend (it says that a customer has to pay money to a business for something) but practically its a little different though because a “Debit Note” indicates that it represents value that has been added to an order later in time.

My question being … would you suggest to either add a naming series to Sales Invoices (like DB-0000x) *then it still would be called Sales Invoice I think but at least through the number indicate being a Debit Note) or add a Doctype “Debit Note”

I’d rather not add any Doctypes if I don’t have to so I am a little pro “Naming Series Approach” but would be happy to hear some opinions and best practices used

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@vrms you could use a Journal Entry for this

Usually you receive a Debit Note when you return something purchased from a supplier. I think right now it is done by creating a reverse purchase invoice.

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Usually you receive a Debit Note when you return something purchased from a supplier.

Can be (nit a common event in my situation thout).

I issue Debit Notes to a customer when asked to deliver more then charged in my Orders initial Invoice for example. Or I have overproduced items, so delivery qty us larger then Order quantity (that’s the use case I am after here).

Not quite sure how a journal entry can help in this regard. You need some accounting event that ads up in your receivables (and also on the amount owed by the specific customer)

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