What is Debit note?

A debit note is the mirror of a credit note. Where the credit note reduces what a customer owes, the debit note increases it: an undercharge, a rate applied wrongly in the customer’s favour, or extra goods supplied after the original bill was issued.

Like the credit note, it refers to the original invoice and adjusts the VAT to match. Both parties’ records and tax positions stay in step, and the first document is never rewritten.

Use a debit note rather than reissuing the invoice. Reissuing breaks your numbering sequence and your audit trail, which is the record of every change made to your books. And where you bill electronically, editing an invoice is not permitted at all. Keep the original, add the correction, and let the registers show both.

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