Debit note: Learn the difference between debit note and

Learn the difference between debit note and credit note , two documents used in accounting for returns and adjustments. See definitions, examples, formats and journal entries for each type of note . A debit note is a document sent by a buyer to seller or in other words a purchaser to a vendor notifying that a debit has been made to their accounts. What Is a Debit Note ? A debit note is a formal document issued by a buyer or seller to adjust errors or discrepancies in an invoice. It is used to notify the other party about an increase in the amount payable due to reasons like underbilling, incorrect quantities, or defective goods returned after invoicing. In accounting, a debit note serves as a correction tool that ensures transactions are accurately recorded. Essentially, it works as an “I owe you” note , helping businesses maintain ...