debit note for customer
Do you have a question?
Debit notes do not apply to customers. They are entered to reflect a return or credit given to you by a supplier.
but my customer deduct two different taxes from my invoice and than pay and due amount is show on accounts receivable (or withholding tax).
And my customer say give me a debit note for refund of withholding tax.
He means a Credit Note which will become a Debit Note in his accounts
Read the guide Account for withholding tax (tax withheld at source)
When a customer withholds tax at the source, there is no documentation for you to submit, to the customer or anyone else. On the contrary, the duty lies with the customer to submit proof that the withheld tax was remitted to the tax authority.
We need to have a provision for debit note to customer , as in most of the accounting softwares, there is a option given, when debit and credit note is raised , if it is to Supplier or Customer …. this would be helpful, this is missing in Manager
Just create an invoice and change the title to “Debit Note”
What is your use case, @edward_dileep? There was another forum topic recently in which a user claimed the need to issue debit notes to customers, but could not come up with a valid example. A customer is not going to give you a credit note (which you would enter as a debit note). Suppliers do that.
Some time, we pay for the logistics on behalf of the customer, which is not a part of the PO agreement, hence we will be asked to send a debit note for the said amount, referring the Invoice that was earlier raised, this option is very much in practice and legally accepted in India, also we have it in all ERP that is locally available to us , It woks very similar to the debit note that is raised suppliers… would be very useful to have this option in Manager
But this amount has to be added on to the invoice already raised… something like the debit note to supplier
Whether it is common practice in India or not, debit notes do not make demand for payment from a customer, which is what you are doing. Sales invoices do that. You can edit a sales invoice and resend, adding a note telling the customer it is a revised invoice. Or you can send a new one for the billable expenses. It is very common to see multiple sales invoices for different aspects of a purchase order or contract.