What are Debit, Credit Note and their Formats?

Category: Education

You might be well aware of the term statement or bill or bill of materials. An invoice is used to maintain a record of sales. So, what happens when there is a change in the value of those invoices. Will you go about editing those invoices? It does not make sense to do so. You have already generated the invoice and recorded those transactions in the journal. The only way out is to make additional entries that indicate a change in the original invoice value and provide a document for further proof of the actual value of the sale made. These documents are called credit and debit notes. In the sections that follow, we shall understand what debit note and credit is. We would also learn what should be mentioned within the debit note and credit note and what should be the format of a debit or credit note? Glance through a few examples of debit notes and credit notes. Debit Note And Credit Note Explained What is a debit note? A debit note is also known as a debit memo. It is a document that is issued from a buyer to a seller indicating a request to return funds as a result of incorrect or damaged goods or services or cancellation of purchase. A debit note is issued before a credit note can be issued by the supplier and acts as a buyer’s formal request to issue a credit note.