Debit Note Format
What is a Debit Note?
A debit note, also known as a debit memo, is a document issued by a seller to a buyer to correct an error on an invoice. It is used to either decrease the amount owed by the buyer or to request payment for an additional charge that was not included on the original invoice. A debit note format is a standardised layout or template for creating a debit note.
Debit Note in GST
As per the GST rules, when a seller issues a tax invoice, a debit note has to be issued if any of the below situations arises.
- If the seller creates the invoice with a value less than the actual value of goods or services provided.
- If the seller includes a lower tax value than the actual tax applicable for the goods or services sold.
- If the seller sends more quantity of goods or services than those priced in the invoice.
To regularise these kinds of situations, the seller can issue a debit note to the customer. Thus provided debit note includes a supplementary invoice.
Debit Note Format – Details to Include
As per the GST regulation, there is no prescribed template for debit notes. However, it mandates the mention of the following particulars in a debit note.
| Seller’s Information | Details of the seller – name, address, and GSTIN (goods and services tax identification number) |
| Document Type | Name of the document – debit note or credit note |
| Serial Number | A unique consecutive serial number (not exceeding 16 characters and contains numbers, alphabets, alphanumeric, or special characters) |
| Date | Date of issue of document |
| Buyer’s Information | Details of the buyer – name, address, and GSTIN (in case of a registered business) |
| Other details to mention | Serial number and date of the actual invoice or bill |
| Value of goods as mentioned in the previous invoice, tax rate, and amount of tax credit to the buyer | |
| Signature of the supplier or authorised representative |
Debit Note Formats – Word, Excel, PDF
Debit note templates can be created in many different templates and formats depending on your business needs and preferences. You can find free debit note templates online in various file types, including Excel, Word, PDF, and Google Docs. Some templates are more basic, while others are more detailed and include additional features such as automatic calculations.
Debit Note Format in Word
If you prefer to use Word to create your debit note, you can use a template or create your document from scratch.
To create a debit note format in Word, input the necessary information, such as the seller’s name and contact information, the buyer’s name and contact information, the invoice number, and the corrected amount. You can also include additional details, such as the reason for the correction and any other relevant information.
Debit Note Format in Excel
A better alternative to debit note format in Word is using MS Excel, which is an easy tool to deal with data and numbers.
To create a debit note format in Excel, open a blank Excel sheet, define the fields, enter the required headings for each field, specify the formulas for the addition of price, input tax, to auto-populate date, etc. Once all the required fields are defined, you can save the debit notes format.
Whenever, you wish to create a debit notes format in Excel, make a copy of the sheet, enter the customer and invoice details, and use it.
Debit Note Format in PDF
PDF is a popular tool for creating debit note format in PDF because it is easy to read and share and preserves the document’s formatting. To create a debit note in PDF, you can use a template or create your document using a PDF editor.
You’ll need to input the necessary information, such as the seller’s name and contact information, the buyer’s name and contact information, the invoice number, and the corrected amount. You can also include additional details, such as the reason for the correction and any other relevant information.
Creating Debit Note Format Using myBillBook
Using the myBillBook app to create and manage debit notes has several benefits, including
Convenience: The app allows you to create and send debit notes from anywhere, at any time, using your mobile device.
Accuracy: The app automatically calculates the total debit amount and helps you to ensure that all required information is included.
Efficiency: The app’s user-friendly interface and templates make it easy to quickly create and send debit notes.
Security: The app stores your debit notes securely and allows you to track and manage them easily.
A debit note helps request credits or adjustments from suppliers or other business partners. By using a debit note template and following a consistent format, you can ensure that your credit requests are clear and professional. myBillBook app can help you create and manage debit notes, helping you to streamline your financial processes and resolve any issues quickly and efficiently.
FAQs
A debit note format is a standardised layout or template for creating a debit note, a document requesting a credit or adjusting an account. A debit note PDF is a debit note in the Portable Document Format (PDF) that can be opened and viewed on any device with a PDF reader. You can display a debit note by printing it or viewing it electronically on a computer or mobile device. A debit note journal entry is an accounting entry that records the issuance of a debit note. This entry involves a debit to an account like "Accounts Receivable" and a credit to an account such as "Sales Returns and Allowances." A seller or vendor prepares a debit note when requesting a credit or adjustment to the buyer's account. However, the buyer may also prepare a debit note if they request a credit or adjustment from the seller.What is the debit note format?
What is a debit notes template in PDF?
How do I display a debit note format?
What is a debit note journal entry?
Who prepares the debit note format?