Definition
A debit note is a document that increases the amount owed on a previous transaction. A seller issues one to bill an undercharge or added cost after the original invoice; a buyer issues one to notify a seller that they are reducing payment, for example for damaged goods, before a credit note is agreed.
Also called: Debit memo
Debit note in practice
Seller-issued debit notes are an alternative to sending a corrected invoice when a small amount was missed. They reference the original invoice and explain the adjustment.
Buyer-issued debit notes are common in procurement. The buyer records the reduction they intend to take and asks the seller to confirm with a matching credit note.
Frequently Asked Questions
What is the difference between a debit note and a credit note?
A credit note reduces an amount owed; a debit note increases it (or, from the buyer's side, formally requests a reduction). They are mirror images used to adjust an invoice without altering it.