Debit Note for Price Adjustment

Question:

We created a Purchase Invoice for an item worth INR 20,000. We need to create a Debit Note to revise the item's price to INR 15,000. Can we handle price fluctuations using a Debit Note.

Answer: You can very much create a Debit Note against an Invoice itself for price adjustment. In the Debit Note, for the Items, only enter the amount by which you wish to reduce the price.

Original Purchase Invoice

Debit Note created for the price variation

On submission of Debit Note, the outstanding of original Purchase Invoice would be reduced by the Debit Note amount.