To make perfect balance sheets at the end of accounting period is necessary as maybe auditing is carried out as well as to check financial condition of the company.
Debit note is a paper or invoice sent by purchaser to supplier in the case when the invoice he received to pay for particular items is overcharged.
It is a paper slip which shows exact amount of money which is over charged to purchaser and in case of large scale industries this amount is pretty big therefore store manager issues a slip to prevent his company from loss.
Features of Debit Note
- It is important to keep proper documents related to business.
- A store keeper is in charge of inventory being held in store and is answerable for him.
- He only signs invoice in the case when he is ensuring the accounts department that the amount specified on invoice is correct and need to be pay.
- To adjust company’s account this document is required.
- A error free balance sheet is required in the end of financial year therefore the document is used for perfect recording of financial information.
Purpose of Debit Memo
- It is need in the case of extra quantity of raw material delivered to purchaser therefore he issued the note that the extra items he is returning.
- In case of faulty material or damaged goods it is issued.
- If purchaser received invoice in which he is overcharged.
Microsoft Excel Template as Debit Note
Debit note shows the details related to quantity of raw material or goods purchased and therefore the amount payable to supplier. A basic template in excel consists of company name and address on the top. Date should also be mentioned for more accurate records.
A table later shows the item name or item no in case if a company buys different goods. Description and quantity must also be mentioned with unit price. Shipping and delivering cost must be mentioned individually and therefore the net cost can be calculated.