A debit note in invoicing is a document issued by a seller to a buyer to increase the amount due on an already issued invoice. It is typically used to correct errors, add additional charges, or adjust amounts for various reasons.

Key Purposes of Debit Notes:

• Undercharging:

          If the original invoice did not reflect the correct amount, a debit note is issued to adjust the undercharged amount.

• Additional Costs:

          When additional goods, services, or charges are added after the initial invoice.

• Return of Goods or Services:

          If the buyer returns goods, a debit note is issued to increase the invoice amount or adjust for any missing items.

• Tax Adjustments:

          If tax rates or calculations were incorrect, a debit note helps adjust the tax portion.

• Corrections:

           For correcting errors such as incorrect pricing or quantities.