Workflow: Processing a Debit/Credit Note

Step-by-step guide — How to process credit notes and debit notes in Jules when delivery weights, prices, or costs differ from the original invoice.

When to use this workflow

Credit and debit notes are adjustments to existing invoices. Use this workflow when:

• Delivery weight differs from loaded weight — the most common scenario in recyclable commodity trading
• Price correction — the index price is updated after the original invoice was issued
• Quality downgrade — material received does not match the contracted quality grade
• Freight or logistics cost adjustment — actual costs differ from the amounts originally invoiced
• Commercial agreement — negotiated discount, penalty, or other post-invoice adjustment

Credit Note vs Debit Note

Scenario 1: Weight Difference at Delivery

This is the most common scenario. The supplier loads 500 T (measured at origin), but the customer's scale shows 490 T at delivery.

Step-by-Step

1. Record the delivery weight

Update each container's weight slip with the weight measured at destination:

2. Determine the adjustment direction

3. Create the credit/debit note

Navigate to Invoices → Create:

4. Update container invoicing lines

The credit/debit note generates new invoicing lines at the container level:

These lines are included in the margin calculation, ensuring the final margin reflects the actual amount collected.

Scenario 2: Price Correction (Index Update)

The original invoice used a temporary index estimate (e.g., TSI = 330 USD/T). The final published average is 325 USD/T.

Step-by-Step

1. Identify affected invoices

Filter invoices by the quotational period and look for those flagged with isTemporaryPrice.

2. Calculate the price difference

3. Create the adjustment note

4. Update the operation quality

After issuing the note, update the operation quality:

• Set the definitive price based on the final index
• Remove the isTemporaryPrice flag
• The margin recalculates automatically

Scenario 3: Quality Downgrade

The customer rejects part of the delivery due to contamination or quality issues. A price adjustment is negotiated.

Step-by-Step

1. Document the quality issue — Record the inspection results or customer claim
2. Negotiate the adjustment — Agree on a per-tonne discount or lump sum
3. Create a credit note (SELL direction) to the customer for the agreed amount
4. Optionally create a debit note (BUY direction) to the supplier if they bear responsibility
5. Update container invoicing — Add the quality adjustment lines

Scenario 4: Logistics Cost Adjustment

Actual freight or pre-carriage costs differ from estimates.

Step-by-Step

1. Record the actual bill from the logistics provider
2. Compare to the estimated cost on the containers
3. If the actual cost exceeds the estimate:
   • The margin absorbs the difference automatically when the bill is recorded
   • A debit note to the logistics provider is only needed if they overcharged vs. the agreed rate
4. If the actual cost is less:
   • Record the credit note or reduced bill from the provider

Debit Note Sub-Types

Jules classifies debit notes by their source:

Application to Payments

Credit and debit notes can be applied against outstanding invoices:

This reduces the net amount to pay or collect without requiring a separate payment transaction.

Impact on Margin

Credit and debit notes directly affect the final margin calculation:

Final margin = Sale invoice − Purchase invoice − Bills − Credit notes + Debit notes

Verification Checklist

Related Documentation

• Invoicing & Billing — full invoicing reference
• Containers — weight fields and invoicing lines
• Margin Calculations — how adjustments affect margin
• Workflow: Month-End Margin Close — processing notes as part of month-end