Debit Note Template
A debit note adjusts an amount owed upward — a buyer raising it to a supplier for returned/faulty goods, or a seller to correct an undercharge. It's the counterpart to a credit note. This template references the original invoice, states the reason, and carries its own number so both sides' books reconcile.
Last reviewed 2026-07-08
Template preview
- From:
- Your Company · you@email.com
- To:
- Supplier / Customer · other@email.com
- Debit note #:
- DBN-0014
- Against invoice:
- INV-0203 (2026-06-15)
- Date:
- 2026-07-08
| Description | Qty | Unit price | Amount |
|---|---|---|---|
| Returned faulty goods — Product C | 10 | $30.00 | $300.00 |
| Undercharge correction — freight | 1 | $45.00 | $45.00 |
| Subtotal | $345.00 | ||
| Tax | $27.60 | ||
| Total debit | $372.60 | ||
How to fill in each field
Original invoice reference
Cite the invoice the debit note adjusts, with its number and date.
Common mistake: No reference, breaking the audit trail between documents.
Reason
State why the amount is being debited (return, undercharge, damage).
Common mistake: Issuing a debit note with no reason, which the other party disputes.
Unique number
Give the debit note its own sequential number.
Common mistake: Reusing invoice numbers and confusing the ledger.
Tax
Adjust the tax proportionally with the debited amount.
Common mistake: Debiting the net but forgetting the tax portion.
Related templates & variants
A debit note increases what's owed; a credit note reduces it. To bill in the first place, use the invoice template.
A free credit note template to correct or refund an invoice — original invoice reference, reason and amount credited. Download in Word or Excel with a guide.
Download a professional invoice template in Word, Excel, CSV or Google Docs.
A free purchase order template — PO number, vendor, itemized order, delivery and terms. Download in Word or Excel with a field-by-field guide for buyers.
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Frequently asked questions
What is a debit note?+
A debit note is a document raising the amount owed on a prior transaction — commonly a buyer notifying a supplier of returned or faulty goods, or a seller correcting an undercharge. It's the counterpart to a credit note.
What is the difference between a debit note and a credit note?+
A debit note increases the amount owed (e.g. buyer returns goods to a supplier); a credit note decreases it (e.g. seller refunds a customer). Both reference the original invoice.
What should a debit note include?+
The parties, a unique debit note number, the original invoice reference and date, the items and reason, the amount and any tax adjustment.
Sources & further reading
- What are debit notes? Purpose and use (Investopedia)— investopedia.com
- What is a debit note? (Refrens)— refrens.com
We review authoritative guidance when building each template. Links are for reference only.