What is a debit note?
By Tim White · Glossary · Last updated
A debit note is a document a buyer sends a supplier to claim a reduction in what they owe, usually for returned goods, a short delivery or an overcharge. It's the buyer-side mirror of the credit note the supplier issues in response.
Debit note vs credit note
Same adjustment, opposite sender. You raise a debit note for 300.00 because six cases arrived damaged. The supplier agrees and issues a credit note for 300.00 against the original invoice. The credit note is what formally reduces your balance.
Common mistakes
Raising the debit note and never chasing the credit note. The claim sits open, and three months later the vendor statement still shows the full amount.
Applying it to the wrong invoice when a vendor has several open. Always quote the original invoice number.
Treating it as a payment. A debit note records a claim and moves no money.
Common questions
Who issues a debit note?
The buyer. The supplier usually replies with a credit note.
Does a debit note reduce what I owe on its own?
Not formally. Most suppliers confirm the reduction with a credit note before it shows on your account.
Sources
Keep reading
Try it on your own invoices
10 invoices a month free, no card. Every field comes back with a confidence level and the text it was read from.