In trade or business, a debit note template is used by the buyer to ask the seller for a refund as a result of incorrect or damaged product delivery. The debit note is also used to provide details about the upcoming bill and remind the overdue payment. Choose professionally designed debit note templates from our gallery, which are easy to use, have all the essential details, and are available in Word, PDF, and Excel formats.
If you want to create the debit note correctly, use these handy templates to simplify the entire process. Read the complete article to know everything about the debit note.
What is a Debit Note?
A debit note is a document used to return the purchased goods and request a refund from the seller. It is issued when they receive damaged or incorrect items and demand to return payment that they made in advance. A debit note is also referred to as a “Debit memo”. It is a formal document that contains all the information about the business deal like the product detail, order date, reason to issue the debit note, payment information, both parties’ details, and other information that make this debit note more effective. Avoid the hassle to make the debit note from scratch; get ready-made debit memo templates to make the entire process easier and simpler.
The debit note from the buyer works as evidence for returning the purchasing goods that the seller uses to record this transaction. A credit note also takes place when a buyer decides to return the purchased goods or products. It is also called the credit memo, which is a formal document issued by the seller when the buyer submits a request to pay back to cancel a transaction. The debit note works as an essential document that helps you eliminate any confusion made in a business transaction. See below to understand its elements and learn to format a debit note.
Key Elements of Debit Note
Debit note is commonly used in business-to-business transactions to eliminate confusion about payment figures, returning the products, and other purposes linked to the payment transaction. To make this process effective, download a simple debit note template in Excel format to ready the debit note in a few seconds. The essential elements of debit notes are as follows:
- The Seller’s full name, address, phone number, and other contact details.
- The buyer’s full name, address, designation, and other details make the debit note detailed.
- The delivery details like product name, quantity, weight, and other descriptions.
- It should also include the date when delivery was made and when the buyer placed the order.
- Place the order number that the buyer receives from the Seller when they place the order.
- The reason to write this debit note.
- The total amount of payment that buyer has paid or will pay.
- If the delivery is made through shipment, then add the details about the shipment clearly.
- Signature of the sender to make this debit note valid.
The elements mentioned above of debit notes are essential and must be included to make this process effective. Get editable debit note templates from our collection that allows you to make any changes as you prefer. These templates are extremely simple and easily used by any person.
When Do We Need a Debit Note?
A debit note is an essential document in trade to handle the debt issue. There are many reasons you need to send a debit note in a transaction to do everything smoothly. See the below-mentioned points to understand when we have to send a debit note.
- Damage or incorrect product delivery: When a transaction is made, and the buyer receives damaged or incorrect goods in the delivery, a debit note is needed to write to demand a refund.
- Cancellation of delivery: As a buyer of goods, if you decide to cancel your order but you made payment in advance, a legal way is to submit the debit note to the seller to ask for your payment.
- Reminder to overdue payment: In a business, you need to set a payment deadline for a healthy cash flow. When the payment deadline is reached or over, and there is still no response about payment from the buyer, a debit note is used to remind the buyer of payment.
- Correct the invoice mistake: The invoice contains all the essential information about a credit transaction of goods or services. It is a way to demand payment from the client. As a service provider, if you made any mistake in payment details, a debit note is an effective way to correct your mistake.
How to Format a Debit Note Using Template
If you are in a situation where you need to write a debit note, then see the below-mentioned steps to make an effective one.
Step1: Download a template: First of all, choose your favorite debit note from our gallery in a format that suits you.
Step2: Enter both parties’ details: Write down the seller and buyer information like full name, address, phone number, and other contact details.
Step3: Put the product information: Give details about your delivery like product name, product quantity, weight, and other descriptions that give enough information about what you have ordered.
Step4: State payment details: Put the amount that the buyer has paid or will pay. Also, state the payment terms and price of each item to make the total amount.
Step5: Explain the purpose of this debit note: State the purpose of sending this debit note. Put details in a simple language that the receiver understands to know your intended purpose of sending this debit note.
Step6: Signature: It should be signed by the sender to make it valid.