Debit Note

Increasing customer liability through debit notes.

What is a Debit Note?

A Debit Note is a document issued by your business to a customer to increase the amount they owe. It serves as a supplementary invoice for costs not covered in the original billing.

When to Use a Debit Note

• Undercharged Invoices: If a customer was accidentally billed for less than the agreed amount.
• Post-Invoice Fees: Adding shipping, handling, or administrative fees that were missed on the original invoice.
• Price Adjustments: When the price of a service increases after the initial invoice was issued, but before payment.

Impact on Balances

Issuing a debit note will:

• Increase the customer’s total outstanding balance.
• Increase your accounts receivable total.
• Increase your reported revenue for the period.

Always provide a clear explanation in the description field of a Debit Note to avoid confusion and disputes with your customers.