A debit note records an amount that one party says should be added to or deducted from an existing account, depending on the accounting and commercial context. Businesses should state the reason, original document reference, amount, and tax treatment clearly.
Quick reference for Debit note
| Check | What it means for the transaction |
|---|---|
| Category | Orders, invoicing, accounts payable and accounts receivable |
| Record to keep | Link the order, delivery evidence, invoice, approval, adjustment and payment reference that belong to the same transaction. |
| Do not infer | An approved invoice or recorded payment does not by itself prove that funds have settled or that the open balance is reconciled. |
Debit note and nearby terms
- Invoice: An invoice is a document a seller issues to request payment for supplied goods or services.
- Credit note: A credit note is a seller-issued document that reduces an amount previously invoiced, commonly because of a return, overcharge, discount, cancellation, or billing correction.
- Payment reconciliation: Payment reconciliation matches money sent or received with invoices, bank or payment-provider records, fees, exchange differences, and accounting entries.
