In the field of import and export transportation, the concepts of Debit Note and Credit Note are quite familiar and common. To understand better What is Debit Note? and have more knowledge about this term, let’s learn together with Lamchutaichinh in the article below.

What is a Debit Note?

Debit Note – Debit note is known as an important document used in import and export logistics transactions to adjust the value on invoices. This document is issued by the buyer and transferred to the seller when returning the borrowed goods.

What is the debit note?
Debit Note (debt note)

It is clear that Debit Note will provide important information to the purchaser about bill payment. This is also considered as a reminder of the seller’s debt to the buyer when it is time to pay.

Learn about What is net revenue?

Features of Debit Note (Debt Note)

Debt notices usually have some basic characteristics below:

  • Debit notes are often used in commercial transactions between businesses and businesses. The most common transaction is a credit extension.
  • Debit note is likened to a document confirming the commission rate that the business has to pay to the agent. Debit note will be made into 2 copies, 1 copy will be kept by the business, the other will be kept by the customer.
  • Debit note plays an extremely important role, after the goods arrive at the port, the bank will conduct a check and collect the money through the numbers recorded on this document.
  • Debit notes are usually in the form of a letter. The content of the document may not require immediate payment from the buyer if a debit note is used to notify the buyer of upcoming liabilities.

Content Provided In Debit Note

Debit Note is used in business-to-business transactions to provide relevant information or remind bills that are due for payment.

  • Credit extension transaction when the seller has delivered the goods but the buyer has not paid for the order.
  • In case of returning goods, the total amount of credit disbursed will include the returned goods and the reason for the return.

Other Types of Debit Notes

Debt notices are issued under the following forms:

  • The form of a freight receipt: when the value of the order has not been paid, the buyer has the right to use the goods and can return the goods if the quality of the goods is not guaranteed or unsuitable (with evidence attached). ).
  • Postcard format: reminding the debt to be due for payment with relevant contact information, information on how to resolve the debt…

Learn about What is postal code?

What are the conditions for issuing a debit note?

To be able to issue a debit note, the following conditions must be met:

  • When doing customs procedures, the agent will choose Debit Note in the “HBL Details Add” section.
  • Enterprises must also actively add other receivables. When the documents are completed in the form of doc files, they must be immediately sent to the agents for them to carry out shipping procedures.

What Is The Meaning Of Debit Note?

We can understand that Debit Note is a form of adjusted invoice, mainly used in B2B model ie transaction model between 2 or more companies.

Debit Note is issued by the vendor in the following 2 cases:

  • Original tax invoice has been issued but the recorded tax value is lower than the actual value to be paid.
  • Original tax invoice has been issued but the taxable value calculated in the invoice is lower than the actual tax value.

Is Debt Notice Mandatory Document?

Debit note is not a mandatory document because it is just a standard business practice and not all businesses use a debit note to remind them of a debt.

What is Credit Note?

What is the debit note?
Credit Note

Credit Note is also an important document in import-export trade transactions, recording the amount that the supplier of goods and services needs to deliver to the consumer. Credit Note invoice is issued when the shopper wants to return the goods when the product has a defect, unlike the commitment. At that time, the seller is responsible for refunding the money.

In addition, Credit Note is also issued when returning the change in purchase and sale transactions to the buyer. The information to be recorded in Credit Note and Debit Note vouchers needs to be detailed, clear and specific:

  • Supplier Name, Address, and GSTIN.
  • The nature of the document.
  • Unique manufacturer serial number for a financial year.
  • Document issue date.
  • Name, address, GSTIN/Unique ID Number of the recipient (if registered by the recipient).
  • Serial number and corresponding tax invoice issue date (if any)
  • Taxable value of goods/services, tax rate, tax amount (if any)
  • Written or digital signature of the supplier/authorized representative.

Compare The Difference Between Debit Note And Credit Note

Credit Note and Debit Note are both adjusted value invoices, but the meaning of each is completely different:

  • Debit Note is exported when adjusting the value of goods and services. The buyer will issue a Debit Note to request the seller to provide Credit Note.
  • Credit Note is issued when reducing the value of goods and services in the invoice. When the goods have a manufacturer defect, the buyer has the right to request a return and refund. Credit Note will cancel the invoice value previously issued by the seller.


Through this article, I hope readers have understood the concept What is Debit Note?, meaning and types of documents Debit Note used when doing import and export trade transactions. Credit Note is also an adjusted invoice like Debit Note, but the purpose and meaning is opposite to that of Debit Note.

Information edited by:


Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *