Debit Note: What It Is and When to Use It
A document that increases the amount owed on an invoice already issued.
What Is a Debit Note?
A debit note increases the amount owed on a transaction that has already been invoiced. It is the mirror image of a credit note: same mechanism, opposite direction. The original invoice stands, and the debit note records the additional charge against it.
Sellers issue debit notes when an invoice under-charged — a missed line, an old rate, freight that was never billed. Buyers also issue them, as a formal notice that they believe they have been over-charged and intend to deduct the difference.
That dual usage is why debit notes are worth handling carefully. A buyer-issued debit note is a claim, not an accounting entry in your books, and it usually needs a matching credit note from you before anything settles.
When to Use It
- You under-billed an invoice and need to charge the difference.
- Costs such as freight or handling were omitted from the original invoice.
- A price increase was agreed after the invoice was issued.
- A buyer is formally notifying you of a charge they dispute.
Who Uses It
- Suppliers correcting an under-charge
- Buyers raising a formal claim against a supplier invoice
- Wholesalers and distributors adjusting freight or surcharges
- Accounts teams reconciling supplier statements
Benefits of a Debit Note
- Recovers an under-charge without reissuing or altering the original invoice.
- Keeps a clear, dated record of why the amount changed.
- Gives both sides a document to match against the original transaction.
- Formalises a dispute so it is handled on paper rather than by email thread.
Fields to Include on a Debit Note
The fields below are the ones businesses commonly include. They are a practical starting point, not a statement of what any particular country requires.
- The words "Debit Note" clearly on the document
- Your details and the other party’s details
- A debit note number from its own sequence, plus the issue date
- The original invoice number and date being adjusted
- Description and amount of each additional charge
- Any tax on the additional amount, at the applicable rate
- Total additional amount due and currency
- The reason for the adjustment
Common Debit Note Mistakes
Treating a buyer’s debit note as settled
A debit note received from a customer is a claim. Until you agree it and issue a credit note, your ledger and theirs disagree.
Issuing one instead of a new invoice
For genuinely new work, raise an invoice. A debit note is for adjusting an existing transaction.
No reference to the original
Without the original invoice number a debit note cannot be matched and will sit unresolved.
Omitting the reason
An unexplained additional charge is the fastest route to a disputed account.
Debit Note Best Practices
- 1Maintain a separate numbering series for debit notes.
- 2Explain the adjustment in one plain sentence and attach evidence where relevant.
- 3Agree the change with the customer before issuing, wherever practical.
- 4Apply tax to the additional amount consistently with the original invoice.
- 5Reconcile debit and credit notes together so no adjustment is left dangling.
Debit Note FAQs
What is the difference between a debit note and a credit note?
A debit note increases the amount owed; a credit note decreases it. Both reference an existing invoice rather than replacing it, and both should carry their own numbering sequence.
Who issues a debit note — the buyer or the seller?
Either can. A seller issues one to recover an under-charge. A buyer issues one to notify a supplier of an over-charge they intend to deduct, which normally needs a credit note from the supplier to resolve.
Can I use a debit note instead of a new invoice?
Only for adjusting something already invoiced. New goods or new work should be invoiced normally so your sales records stay accurate.
How do I create a debit note?
Title the document "Debit Note", give it its own reference number, cite the original invoice, and list only the additional charges. PDF Invoice Pro handles custom titles and free PDF download.
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Related Invoice Types
- Credit NoteA document that reduces the amount owed on an invoice already issued.
- Commercial InvoiceThe document that describes and values goods being shipped across a border.
- Consolidated InvoiceOne invoice covering many deliveries, jobs, or sites in a period.
- Tax InvoiceAn invoice that itemises the tax charged on a sale as a separate line.
Debit Note Templates
This page explains the document. If you just want to produce one, these templates open the free generator pre-configured with the right line items and tax fields.
Browse all invoice templates by industry →Further reading
Guides on this site that go deeper on the topics above.