Glossary

What is a debit note?

By Tim White · Last updated

A debit note is a document a buyer sends a supplier to say they are reducing what they will pay, or claiming money back, usually for returned goods, a shortfall, or an overcharge. It is the buyer-side mirror of the credit note a supplier issues.

Debit note vs credit note

Same event, opposite sender. The buyer raises a debit note to flag the adjustment; the supplier issues a credit note to formalize it against the account. One usually follows the other.

Keeping the paper straight

Adjustments are where records drift. A debit note has to tie back to the original invoice by number and amount. InvoiceJet extracts those identifying fields with a source citation, so the document you are adjusting against is the right one.

Common mistakes

A debit note is quick to raise and easy to lose track of. A few patterns cause most of the trouble.

  • Raising the debit note but never chasing the supplier's credit note, so the claim sits open and the account never squares.
  • Applying it to the wrong invoice when a vendor has several open, which throws two balances off at once.
  • Treating it as a payment. It records a claim; it does not move money.

Common questions

Who issues a debit note?

The buyer, to notify the supplier of a reduction or claim. The supplier typically responds with a credit note.

What is the difference between a debit note and an invoice?

An invoice bills for a new sale, while a debit note adjusts an existing balance downward for a return, shortfall, or overcharge. A debit note references the original invoice rather than starting a new charge.

Does a debit note reduce what I owe on its own?

Not by itself. A debit note records the buyer's claim, but the supplier typically confirms it with a credit note before the payable balance is formally reduced.

Sources

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