Debit Note Format In Word: Fill & Download for Free

Debit Note and Credit Note are used while the return of goods is made between two businesses. Debit Note is issued by the purchaser, at the time of returning the goods to the vendor, and the vendor issues a Credit Note to inform that he/she has received the returned goods. Jul 26, 2018Debitoor's accounting dictionaryDebit noteDebit note - What is a debit note?[A debit note (also known as debit memo) can be issued from a buyer to their seller to indicate or request a return of funds due to incorrect or damaged goods received, purchase cancellation, or other specified circumstances.A debit note can be treated as a credit note, except it is issued from the buyer's side, and is issued before a credit note can be issued from the supplier.In other words, a debit note basically acts as a buyer's formal request for a credit note from the seller. The document, therefore, serves as evidence to support a purchase return in the accounting books of a buyer.When to issue a debit noteAs a customer, if you receive goods that you would like to return back to the supplier, you can issue a debit note to your supplier to claim back for goods you have received on credit.If you (buyer) purchase goods from a seller or supplier, and you would like to return the goods for any valid reason, you can issue a debit note.There are several reasons in which a debit note should be issued. Some common scenarios when to issue a debit note include:Goods received are damaged or defectiveThe purchaser has been overchargedThe invoice value is incorrect (due to extra goods being delivered, or goods are charged at a lesser value, etc.)Debit note exampleThe process of a debit note is very similar to that of the credit note. Debit notes should always be kept for your accounting records, as a formal and evidential documentAn example of a situation when a debit note is issued:Company A purchases goods worth £200 from Company B.Upon arrival at Company A, the goods are damaged. Company A would like to return the goods to Company B.Company A issues a debit note - containing all the relevant information including original purchase amount and VAT.When Company B receives the debit note, they can review and approve the request, and issue a credit note as proof of reimbursement to Company A.In this case, it is the buyer who issues a debit note to the supplier as a request for credit or reimbursement.However, there are also cases when a debit note is issued from the supplier to the buyer. For example:Supplier, Company Z, sells and ships goods worth £5000 to buyer, Company X.Company Z invoices Company X for only £4000 (due to a mistake)Company Z realizes their mistake and issues a debit note to Company X for the difference of £1000 to resolve the difference and make the necessary adjustments in their accounts receivable.Debit notes and DebitoorIf you work in a business that sells products or goods, one of the ways to avoid a debit note being issued is to first create a [proforma invoice].This way, the invoice you send to your clients does not need to be the final invoice, and you can still make any necessary adjustments before issuing the final invoice.If, on the other hand, you send an invoice to customers for goods you have sold them on credit, and the goods received are damaged, then your customers can issue a debit note to you. When you receive this debit note, if you are using an invoicing software such as Debitoor you can easily respond to their debit note by issuing a credit note.]

Why am I writing this answer?Yesterday a mishappening occured & my wallet dipped half in water.I was so terrified, I can't explain in words!I delayed going to office & carefully took out each and everything from wallet & placed in sunlight for an hour.I was surprised seeing the amount of stuff it was carrying!Here goes the list-4 Passport size photographs.Wife's & parents passport size photographs.Citibank Debit Card & Punjab & Sind Debit card which doesn't work most times. (I don’t use a credit card)Driving License.Sai Baba photo card bought in 2007 from Shirdi.1 rupee note gifted by my wife which she had since 1996. (her lucky charm)1 RTGS cheque & another cheque.100 rupee note from my wife's first earnings.A few cards and slips from my past businesses (memories)8 year old thank you note given by my aunt & a 10 year old letter gifted by my cousin sister.Metro Cash & Carry membership card.Delhi Metro card.Few visiting cards.Guarantee slip of my mobile phone.Mahindra Top Gear, Reliance One & Hypercity membership cards (I don’t know how and for what they are used)Oh I forgot, some cash also. (no coins though)All this in a medium size wallet. (it appears obese though)Thank God everything dried well!

Whenever we read the word “outsourcing” only one thing strike in our minds that How can a service provider from another country can manage our services?But in reality outsourcing is just a term that refers to the external workforce who is working precisely on your business requirements.Outsourcing of account payable is hiring service provider who will manage your account payable in which it includes:Document managementInvoice processingMonth end reportingAudit and reconciliation of invoicesElectronic payment handlingRecommend for early payment where discount or other benefits are availablePreparing credit or debit notesBenefitsNo need to invest in maintenance or any upgradationNo need of equipment technology ownershipNo need to give training to employeeIt’s not a core operation, it requires 100% accuracy that is only delivered by outsource service provide who have dedicated expert for this task.In simple words, outsourcing accounts payable will save your cost with consistent high performance.Take a look what outsource accounts payable service providers offers