Recording credit notes from suppliers

How come there is no credit note for suppliers?

Debit notes haven’t been implemented because unlike credit notes which need to be printed out for customers, debit notes don’t have to be printed out and given to suppliers.

So if you receive credit note from supplier, simply record this as an journal entry under Journal entries tab. Generally you will want to credit an expense account and debit Supplier advance payment or Accounts payable (depends whether credit note from supplier is credit for the future or to offset some unpaid purchase invoice or invoices).

If you receive actual cash refund, then no need to bother with journal entries. Just categorize refund under Bank accounts or Cash accounts tab as received money.

Debit notes have been added. See: Guides | Manager

How to record Debit Note from supplier?

For example I purchase construction material and deliver to the specific place. In my PO Doesn’t include delivery charges. Supplier sent me a Debit Note to charge the delivery charges. How to record that Debit Note to my account? or just edit my PO to include delivery charges?

Shouldn’t supplier send you an invoice? There is no point in editing purchase order as purchase order has no effect on financial statements.

It suppose to issued me an Invoice but the supplier sent me a Debit Note. So, in this case I just create new purchase invoice right? Thanks!!

What’s on debit note? Just delivery charges? What about the construction material you have purchased? Have you received an invoice for it?

The Supplier issued me an Invoice for construction material & Debit Note for delivery charges

Then edit the original purchase invoice and add delivery charges to it as per debit note. Don’t edit purchase order. Only purchase invoice.

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I have a question - how do i accept a credit note from a Supplier against a purchase invoice (faulty items were delivered and returned), and use this credit note against another Purchase invoice for the same supplier.

I would like to make a journal entry against the same.

To record credit note from supplier, use Debit Notes tab. I know it’s a bit unintuitive to record credit note under debit note but from your point of view it is basically a debit note. Maybe in future I will change the navigation a bit to make it more straightforward.

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My supplier issued me a debit note for overdue interest of late payment.
How can I make this entry?

@Sameer, enter this as a purchase invoice from supplier.

I know it’s a bit confusing since Manager has a tab called Debit notes but this tab is when suppliers issue credit note (from your point of view it’s a debit note). If supplier issues debit note, then from your point of view, it’s the same as new purchase invoice.

OK then. I thought that purchase invoice is for purpose of inventory stock. And the debit note given is not as invoice, Its number is also different series. Anyway, I will make purchase invoice entry.
Thank you for quick responce.

@Sameer, a purchase invoice records any purchase you intend to pay in the future. The effect, typically, is to debit some expense account (depending on what is purchased) and credit Accounts payable, which is a liability account. You will notice that no money leaves the company. When it is time to pay the purchase invoice, you Spend Money from a cash or bank account, allocating the payment to Accounts payable and the specific purchase invoice.

In your specific example, the account to debit would be something like Interest paid. (Create a new account if you don’t have one for that.)

Another option you have is to bypass the purchase invoice and directly Spend Money from a cash or bank account to pay the interest charge. However, while that would be a simpler approach, you would lose the ability to show the interest charge and payment on a supplier statement.

When I issue credit note to customer, the inventory qty does not increase. How this is useful?

What version are you using? Try the latest version. It would definitely work there.

Manager 16.2.65 I am using. But inventory qty does not decrease when I issue credit note to customer on receiving any sales return stock.

The latest version is 16.2.83. So try that one. I’ve been working on inventory costing lately so that’s why I’m confident the latest version should fix your issue.

Yes! 16.2.83 works right. Inventory qty increased, but inventory cost remains as previous.

Credit note should bring back the original cost back into inventory on hand. If it doesn’t, you can send me your accounting file to and I’ll have a look.