It is a document issued by a vendor to a customer to increase the due amount in the event of an error in invoice or increase in the item rates at the time of delivery.
Amount due for customer = Amount on invoice + Value of debit note
Let’s say you sell 100 pens each of Rs. 10 to a customer called John. Now, you’ve delivered only 90 pens to John mistakenly. To rectify this, you need to raise a Debit Note equivalent to the value of those remaining 10 pens, i.e. Rs. (10*10) which will be Rs. 100.
Amount due for John = Rs. 900 (90* 10) + Rs. 100 (10*10) = Rs. 1,000.
One solution for your accounting and GST filing needs