Since debit notes are raised by the buyer to request funds, it is always shown with a positive or ‘+’ sign in the buyer’s accounts, unlike a credit note which is shown by a minus sign ‘-‘ in the seller’s accounts. You can also think of a debit note as a claim made by the customer/buyer against a seller, and in the case of returned goods from a vendor, a debit note shows or reflects the change in the purchaser’s books. If the cost or the description of products mentioned in the invoice is incorrect.ĭebit notes are also involved in business-to-business transactions and include details such as the date on which the debit note was issued by the buyer, a serial or unique identification number, description of previous business transaction, details of items returned including sales tax and the signatures of the appropriate company authorities.ĭebit notes are different from invoices because they are formatted as letters with the above-mentioned details and, secondly, they may not require immediate payment, as is the case with invoices.If the seller has charged more than the agreed price.If the goods received are either incorrect or damaged.A buyer can raise or issue a debit note under various circumstances, such as: It is evidence to support a return of purchase in their accounting books. A debit note, sometimes referred to as a debit memo, is a document raised by a buyer and used in specific situations where they want to indicate or request a return of funds paid to a seller.Ī buyer can issue a debit note in various situations and it is a way to put forward their request for getting a credit note from the seller.