“Debit note” is a note issues to eliminate the mistakes, and use to show exact amount payable to business. Its templates is therefore a proper documentation of debit note in project management software to deal with complicated situations.
Are you an accountant in small industry or big enterprise dealing accounts related to multiple raw material items ordered by business? If so you have came across many situations when the invoice shows more cash payable or in some cases shows less amount payable and same is the case with “amount receivable”.
Purpose of using Debit Note Template:
Original Billing Amount:
It can use in different cases however first is when amount payable invoice sent to customer shows a relatively low amount.
It needs to level to prevent yourself from loss therefore a debit memo is issue to show the amount which not include in invoice sent before.
Some business and companies however issues new invoice to customers instead of making debit note.
Sometime more amounts can receive from customer which 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.
Purchases Return: Sometime shipment of goods receive consists of more items than order therefore they are return by purchaser. In case of faulty goods receive they are also send back. In this case debit note issue to show the amount which need to reduce from invoice.
Prevent Disputes: Business need to have exact accounts showing amount payable and amount receivable. A transactions which are creating trouble to balance the accounts they must adjust. It helps in maintaining 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 shown by both parties.
It helps in creating trust and friendly relationship which is beneficial for future sales and purchases.
A business need to buy many goods on credit due to shortage of cash available and due to cash invested in some other place.
If a business does not like the quality of product he can send a debit note.
Bank reconciliation process also involved use of debit notes.
Debit Note Versus Credit Note
These terms mostly create confusion among users however I am explaining them in simple words. “Debit note” issued by buyer to seller showing amount which should reduce in invoice whereas credit note is issued by seller to buyer when he receive the goods making him aware that amount for these goods are return in form of “credit note”.
Sample: Example by Rockey Sales Limited:
Size: 43 Kb
Format: Ms Excel (xlsx)
Template Type: Advance (Free)
Download File: Link
Author Name: Brandon Brown
Microsoft Excel for Debit Note
Due to its fundamental importance “debit note template” prepare by most business in Microsoft excel. To create debit note as per need it can easily create as well as it is cost effective.
A basic template shows debit note or debit memo heading on top to clearly show the type of invoice. The company name and address is 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.