How do I record a credit from a supplier (creditor)?
Occasionally, you may need to record a credit from a supplier, i.e. a supplier owes you money. For example, if you purchase goods that are damaged, the supplier may refund you the purchase value or apply the amount to other unpaid purchases you have with them.
Note: Debit Note is issued by the purchaser, at the time of returning the goods to the vendor, and the vendor issues a Credit Note to inform that he has received the returned goods.
To record the debit/refund in Cashbook:
As it appears in invoice list:
Making a payment to supplier including the Debit Note: