“Debit note” is a note issue to eliminate the mistakes, and use to show the exact amount payable to the business. Its templates are therefore proper documentation of Debit Note in project management software to deal with complicated situations.
Are you an accountant in a small industry or big enterprise dealing accounts related to multiple raw material items ordered by business? If so you have come across many situations when the invoice shows more cash payable or in some cases shows less amount payable and the same is the case with “amount receivable”.
Purpose of using the Debit Note Template
Original Billing Amount
It can use in different cases however first is when the amount payable invoice sent to the customer shows a relatively low amount.
Some businesses and companies however issue new invoices to customers instead of making the debit note.
Sometimes more amounts can receive from customers which are shown in accounts.
The accounts of these customers therefore should show nil balance and can be closed.
Use debit note software to keep accounts free of error.
Sometimes shipment of goods receives consists of more items than order-therefore they are returned by the purchaser. In the case of faulty goods receive they are also sent back. In this case debit note issued to show the amount which needs to reduce from the invoice.
Businesses need to have exact accounts showing the amount payable and amount receivable. A transaction that is creating trouble to balance the accounts they must adjust. It helps in maintaining the exact balance on each customer-specific account as well as in financial statements.
- It prevents disputes arousal between supplier and purchaser.
- In case of any confusion debit note and credit note can be shown by both parties.
- It helps in creating trust and friendly relationships which is beneficial for future sales and purchases.
- A business needs to buy many goods on credit due to a shortage of cash available and due to cash invested in some other place.
- If a business does not like the quality of the product he can send a debit note.
- The bank reconciliation process also involved the use of debit notes.
Debit Note Vs Credit Note
These terms mostly create confusion among users however I am explaining them in simple words. “Debit note” issued by a buyer to a seller showing the amount which should reduce in the invoice whereas a credit note is issued by a seller to the buyer when he receives the goods making him aware that amount for these goods is return in form of a “credit note”.
Sample: Example by Rockey Sales Limited
Size: 43 Kb
Format: Ms Excel (xlsx)
Template Type: Advance (Free)
Download File: Comment Below to get free template *Mention Valid Email
Author Name: Brandon Brown
Importance of Debit Note
Due to its fundamental importance “debit note template” prepare by most businesses in Microsoft excel. To create a debit note as per need it can easily create as well as it is cost-effective.
A basic template shows a debit note or debit memo heading on top to clearly show the type of invoice. The company name and address are on top. The tables will shows the information regarding items return.
Unit price per item multiply by total items return, therefore; the net amount returnable can identify clearly.