Debit note

A debit note is a commercial document issued by a seller/ supplier to a buyer/ customer, increasing the amount owed on a previously issued invoice.

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A debit note can come from a buyer as well.

In this case, when it is the buyer issuing a debit note, it is a commercial document issued by the buyer/ customer to a seller/ supplier reducing the amount owed on a previously issued invoice.

In DigiTax, the reference point is always the seller/ supplier; therefore a debit note in DigiTax always increases the amount owed on a previously issued invoice.

Contents of a debit note

A debit note:

• is time-stamped
• includes:
  • an itemized list
  • quantities of items
  • agreed prices
  • applicable taxes and the tax breakdown
  • a reference to the original invoice
• may include payment terms