Debit Note
A debit note is a document raised to indicate an amount owed, often used by a buyer to claim back money from a supplier or by a supplier to charge extra.
A debit note formally records that one party owes another additional money. A buyer might issue one to a supplier for returned goods, short deliveries or agreed penalties, effectively requesting a credit note in response. A supplier might issue one to charge for an undercharge or additional costs not captured on the original invoice.
Debit notes keep both parties' ledgers aligned when adjustments are needed after an invoice is issued. They should reference the original transaction and state the reason clearly so accounts payable and receivable can reconcile the change. Handled within a procurement or accounting system, debit and credit notes create a traceable record of every adjustment.
Frequently asked questions
- What is a debit note?
- A debit note is a document raised to indicate an amount owed — often used by a buyer to claim money back from a supplier, or by a supplier to charge for an undercharge.
- What is the difference between a debit note and a credit note?
- A debit note records an amount owed and typically requests an adjustment, while a credit note is the supplier's acknowledgement that reduces the buyer's outstanding balance.
Related terms
Credit Note
A credit note is a document a supplier issues to reduce the amount a buyer owes, correcting an overcharge, return or agreed adjustment on a previous invoice.
Read definitionInvoice
An invoice is a document a supplier issues to a buyer requesting payment for goods or services delivered, listing what is owed and the terms.
Read definitionPurchase Ledger
A purchase ledger is the accounting record of all invoices a business owes to and has paid its suppliers.
Read definitionAccounts Payable (AP)
Accounts payable (AP) is the money an organisation owes its suppliers for goods and services received but not yet paid for, and the team that manages those payments.
Read definitionExplore related across the knowledge graph
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