Debit Note
A debit note, also known as a debit memo, is a commercial document issued by a seller to a buyer to notify them of a current or upcoming debit to their account. This formal document plays a crucial role in business accounting and transaction management, serving as an important record for both parties involved. Purpose and Function Debit notes serve several essential purposes in business transactions: Purchase Returns : When a buyer returns goods to the seller, the seller issues a debit note to reduce the buyer's account payable. Price Adjustments : In cases where the original invoice amount was understated, a debit note adjusts the difference. Additional Charges : When extra charges need to be added to a previous transaction, such as interest charges or unforeseen expenses. Error Correction : To rectify billing mistakes or undercharges in previous invoices. Key Components A properly formatted debit note should include: Unique debit note number Date of iss