Glossary · Invoices and billing
Debit note
Also called Debit memo
A debit note adds to an amount already invoiced, or asks a supplier for a credit. Which one depends on who issues it.
A debit note records an increase in what one party owes the other. Issued by a supplier, it works like a supplementary invoice: an extra charge missed on the original or agreed afterwards, such as additional hours or shipping.
Issued by a buyer, a debit note is a request: it tells the supplier the buyer has reduced its payable — for goods returned, say — and asks for a matching credit note.
Many small firms simply issue a new invoice for extra charges. Either works, as long as the document references the original invoice so the customer can match it.
Example
After invoicing a client for a workshop, a consultancy adds €350 of agreed travel costs with a debit note that references the original invoice number.