About Debit Note

A debit note serves as a crucial document in accounting, particularly in cases where transactions do not involve the sale of goods or services that typically require an invoice. In the Biz-Flo system, it is recommended to issue a debit note to account for various transactions such as the sale of assets, management charges, claims for damages, claims for products returned without a credit note from the seller, claims for interest on loans, and similar scenarios.

The purpose of a debit note is to communicate to the other party involved that an amount is owed to the issuing party due to these non-conventional transactions. By issuing a debit note, the issuing party is effectively debiting the account of the other party to reflect the amount owed.

By distinguishing between invoices and debit notes, businesses can accurately record and track financial transactions related to non-sales activities. This differentiation ensures transparency and clarity in financial reporting, allowing for accurate financial analysis and decision-making.

To generate a Debit Note, navigate to the Accounting Module and access the Debit Note sub-module through the Menu.

To create a debit note, click on the "New Debit Note" button. A form will then appear for you to enter the necessary details of the debit. At the bottom, designate the account to which you wish the debit note amount to be credited. If the debit note pertains to an outstanding income owed by the relevant party, you may opt to credit it to "other income." Please be aware that the corresponding debit entry will automatically default to "other receivables."