Templates
Debit note format, free in Excel, Word and PDF
A debit note raises an amount against a party after the invoice. In day-to-day trade it is the buyer's note to a supplier for goods sent back; under VAT and GST rules it can also be the supplier's note for an amount undercharged. The format here works for both.
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Filled with the sample shown. The Excel file has formulas for tax and totals.
In short
A debit note records an amount charged back after an invoice: a buyer's return to a supplier, or a supplier's increase in price or tax. The download is free, and SimpleERP posts purchase returns against the supplier bill.
Harbor Supply Co.
Tax number 100 234 567
Debit note
DN-2026-0002
Issued to: Allied Steel Supply
- MS sheet 1.2 mm40 kg
- Angle 25×2515 m
- Bolts and nuts5 set
What this document is for
The phrase covers two documents that look the same on paper. A buyer who returns goods or finds a short supply sends the supplier a debit note claiming the amount back. Separately, a supplier who undercharged on an invoice may issue a debit note to charge the difference and its tax. Both carry the same fields.
- Buyer's debit note for a return: 40 kg of sheet arrived bent and goes back to the supplier.
- Short supply: billed 200 m of angle, received 185 m, so 15 m is claimed back.
- Supplier's debit note: the invoice said $0.85 a kg, the agreed price was $0.90, so the difference and its tax are charged.
What a debit note must contain
A note that amends an invoice carries the invoice's details plus a reference to it. A buyer's note for a return is best kept to the same fields, so the supplier can raise the matching credit note.
- The issuer's name, address and tax number.
- The words "Debit note" as the nature of the document.
- A note number in its own series, such as DN-2026-0002, and the date of issue.
- The other party's name, address and tax number.
- The original invoice or bill number and date.
- Amount, tax rate and tax per line, with the total.
- The reason: return, short supply or price difference.
How to fill the template
Put your header in once
Replace Harbor Supply Co. with your name, address and tax number. Keep the title "Debit note".
Number it in its own series
Debit notes get their own numbers, separate from invoices and credit notes.
Quote the original bill
Write the supplier's invoice number and date, such as Allied Steel Supply invoice 4471 of 12 September 2026.
Enter what is being returned or charged
Returned quantity at the billed price, or the price difference on the full quantity. The Excel file computes tax and total with formulas.
Give the reason and send it
Short supply, damage or price difference. Sign it and send it with the returned goods or by email.
| Item | Qty | Rate | Amount |
|---|---|---|---|
| MS sheet 1.2 mm | 40 kg | $0.90 | $36.00 |
| Angle 25×25 | 15 m | $1.10 | $16.50 |
| Bolts and nuts | 5 set | $0.75 | $3.75 |
| Amount before tax | $56.25 | ||
| Tax at 20% | $11.25 | ||
| Debit note total | $67.50 |
Make it in SimpleERP instead
In SimpleERP a debit note is the purchase-side document. Open the supplier bill, choose Create debit note, copy the lines and reduce the quantities to what went back. Posting takes the stock out at the price you paid and reduces what you owe.
- Capped at what the bill had, less anything already debited on that line.
- The tax on the purchase reverses at the rate the bill charged.
- Stock goes out of the warehouse it came into, when Returns stock is on. Turn it off for a price difference.
- Apply it to the supplier's open bills or take a refund, and the payable updates.
- Prints titled "Debit note" with "Against bill" and the reason.
Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.
Fields
Every field on a debit note, and why
Article 219 treats a document that amends an invoice and refers to it specifically as an invoice. A buyer's debit note for a return is a commercial document best kept to the same fields, so the supplier can raise the matching credit note.
| Field | Required | Why |
|---|---|---|
| Your business name, address and tax number | Mandatory | The supplier issues the note, as it issued the invoice. |
| Nature of the document | Mandatory | Says Credit note or Debit note at the top, so nobody pays it as an invoice. |
| Note number | Mandatory | A unique number in its own series. |
| Date of issue | Mandatory | Decides the tax period the adjustment is reported in. |
| Customer's name, address and tax number | Mandatory | The customer adjusts the tax they reclaimed against it. |
| Original invoice number and date | Mandatory | Links the note to the invoice it corrects; an amending document must refer to it specifically. |
| Taxable amount, tax rate and tax amount | Mandatory | The value and tax being reduced or added, at the rate of the original invoice. |
| Reason for the note | Good practice | Return, price difference or short supply; your auditor will ask. |
| Signature or name of the person issuing it | Good practice | Not required everywhere, but it shows who approved the adjustment. |
Source: EU VAT Directive 2006/112/EC, articles 219 and 226, verified 5 November 2026.
Common mistakes
Mistakes to avoid on a debit note
- Reducing the tax you reclaimed on your own debit note, with no credit note from the supplier to match.
- Leaving out the supplier's invoice number and date, so the supplier cannot tell which bill the return belongs to.
- Debiting at a different price from the bill, so the supplier's credit note and your note disagree.
- Sending goods back without a debit note, then paying the full bill because nothing on file says otherwise.
- Using one debit note number series for supplier returns and customer charges, which mixes two ledgers.
Honest limits
Honest limits
- A sales-side debit note, to charge a customer more after the invoice. Use this template for that note; your accountant can advise how to record it.
- No e-invoicing network or shipping documents for the returned goods. Produce those in the government's or carrier's own system.
- No tax return filing. Your accountant reports the documents in your returns.
Getting started
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Pick your country and type your tax number. Currency, tax rates, accounts, units, roles and numbering are set up for that country.
Add what you sell
Add the supplier and your materials, typed in or imported from a spreadsheet. Enter and post the supplier bill, then create a debit note on it.
Post your first invoice
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FAQ
Questions, answered
What is the difference between a debit note and a purchase return?
A purchase return is the event: goods go back to the supplier. The debit note is the buyer's document that records it and claims the amount back. In VAT and GST countries, the supplier then issues a credit note for the same return, which is what adjusts the tax.
Who issues a debit note?
Either side. A buyer issues one to claim back the value of returned or short goods. A supplier issues one, or a further invoice, to charge an amount the original invoice left out. Check which your country's tax rules recognise.
Does a debit note change the tax I can reclaim?
Your own note does not, on its own. In VAT and GST countries the tax you reclaimed changes when the supplier issues the matching credit note. Keep the two together so the figures agree.
What does the debit note in the download total?
40 kg of sheet, 15 m of angle and 5 sets of bolts returned to Allied Steel Supply: $56.25 before tax, $11.25 tax, $67.50 in all. The Excel file computes it with formulas.
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