Definition of Debit note:
A form or letter issued by a seller to advise the amount owed by the buyer. An invoice is a type of debit note. Also called debit memo.
A debit note, also known as a debit memo, is generally used in business-to-business transactions. Such transactions often involve an extension of credit, meaning a vendor sends a shipment of goods to a company before the buyer's cost is paid. The note tells the buyer that the seller has debited their account. Although real goods are changing hands, real money is not transferred until an actual invoice is issued. Debits and credits are instead logged in an accounting system to track shipped inventories and payments owed.
A debit note is a document used by a vendor to inform the buyer of current debt obligations, or a document created by a buyer when returning goods received on credit. The debit note can provide information regarding an upcoming invoice or serve as a reminder for funds currently due. For returned items, the note will include the total anticipated credit, an inventory of the returned items, and the reason for their return.
How to use Debit note in a sentence?
- In the case of returned items, the note will show the credit amount, the inventory of the returned items, and the reason for the return.
- A debit note is also a document created by a buyer when returning goods received on credit.
- A debit note is separate from an invoice and informs a buyer of current debt obligations.
Meaning of Debit note & Debit note Definition