A debit note is a commercial document which is send by the seller to tell the buyer of current debt duty. A debt note is also used by the buyer when the returning products received on solvency. The debt note give information about concerning an upcoming invoice and also created as the reminder for current cash is required. The total amount except the credit amount may be included by the returning of the goods. A seller also created the debit note instead of the invoice to adjust the amount of the invoice or the invoice recorded the wrong amount. Debit note also called debit memo. Debit memo or debt notes are usually used in business to business proceedings.
Debit notes are used of blue ink and represent the positive amount. The entries on debit note are updated on purchase return book. The debit note minimizes the amount of receivables. In some cases the buyer also issued the document with the information mentioned on debit note to assemble the record keeping stipulation. The debit and credit notes being recorded in the accounting system to keep record of catalog shipped and payments overdue. These notes does not link with invoices while debit notes are generally format as a letter and they may not required prompt payments.