What’s on the debit note template
Extra fields on this template: Original invoice, Invoice date.
| Item | Qty | Rate | Amount |
|---|---|---|---|
| Price difference: hand-poured candle, 8 ozBilled $18.50, quoted $19.25 | 120 | $0.75 | $90.00 |
| Freight surcharge, not billedPallet delivery on [date] | 1 | $85.00 | $85.00 |
| Subtotal | $175.00 | ||
| Sales tax (7%) | $12.25 | ||
| Total | $187.25 | ||
Example prices in US dollars. Replace them with your own; in the generator, any currency works.
Debit note vs credit note
| Debit note | Credit note | |
|---|---|---|
| Effect | Increases what the customer owes | Reduces what the customer owes |
| Typical reason | Undercharge, extra cost | Return, overcharge, discount |
| Payment | Due, with a due date | Refunded or applied |
In some countries, notably India, buyers also send debit notes to suppliers when they return goods, as a request for a credit note. Under GST, a supplier’s debit note is what raises the tax on an earlier invoice.
Debit note or new invoice?
For an extra job or new goods, send a new invoice. Use a debit note when the extra amount belongs to a sale already invoiced, such as a price error or a cost you’d agreed to pass on, so the two documents can be read together.
Frequently asked questions
What is a debit note?
A document a seller issues to increase what a customer owes on an earlier invoice, for example after an undercharge. A buyer may also send one to a supplier to request a credit for returned goods.
Is a debit memo the same as a debit note?
Yes. Debit memo is the usual US term.
Does a debit note include tax?
If the original sale was taxed, charge tax on the extra amount at the same rate.