What is a debit note for goods returned?
A debit note is generally written from the buyer to the seller to request him to accept the return of goods because of any reason. The most common reason that buyers usually have to return goods is that they receive a damaged product that is totally useless for them and therefore, they decide to return it.
The debit memo works in the same way as the credit memo. The only difference is that the credit memo is issued by the seller but the debit note is issued by the buyer. A credit note by the seller or a supplier is always issued once the buyer finishes issuing the debit note.
It is important to remember that this note provides all those details that are sufficient for informing about the return of goods.
What is the purpose of using the debit note?
When a purchaser writes this note, he makes a very formal request to the seller and asks him to take the goods back and return the money. Another purpose of writing this note is to convince the seller into issuing the credit note to the buyer.
In which situations, the debit memo is written?
Some frequently occurring situations in which this note is drafted are:
- When the items received by the buyer are damaged or broken
- When the buyer realizes that he has been overcharged by the seller or the seller has not charged the price that was agreed by both parties
- When the buyer comes to know that the invoice that was issued to him was not correct. For instance, if the invoice does not contain the correct quantity of the items purchased or adds the wrong amount of tax to the total amount being charged, that invoice will be considered incorrect
- When it turns out that the seller has sent the faulty product to the client
Whenever you decide to write this note, make sure that you have read the goods return policy of the company. Some companies don’t offer a goods return facility in case the purchaser changes his mind or if the product received is broken. So, the purchaser should know when he can write this memorandum.
Why it is important to write the debit note by the buyer?
In the business world, the rights of the seller, as well as the buyer, are protected. The buyer is allowed to return the product if the received products don’t satisfy him. There are many such situations when the buyer feels that it is extremely important for him to write this note to the supplier. The supplier also has to keep a record of the items that are returned to him due to any reason. This note has a unique number and it is kept in the register of the supplier as a part of the record that he may refer to in the future.
What should be included in this memorandum?
The main details that must be added to this memo are:
- The date on which the note is issued by the client
- The unique number or Id assigned to the note.
- The invoice number of the goods purchased the purchaser wants to return
- Details of the purchaser such as name, address, etc.
- Description of the goods to be returned
- Reason for returning the product
- The total quantity of the product
- The total amount that has been charged
- Personal remarks or comments of the purchaser
- Signatures of the purchaser
The debit note for goods return is always short as it is a formal note written by the client and it is only used to inform the manufacturer that the products he has sent are required to be returned due to any reason.
The details to be included in this piece of information may vary depending on who writes this memo and in which industry the business is operating. There can be many other factors to be kept into consideration such as one’s relationship with the business/supplier and whatnot.
Read the sample note given below:
Sample debit note:
Debit note number:
Address of the company:
Return of 2 perfumes received broken in transit. 500$.
Total amount 500$
File: Word (.docx)
Size 22 KB
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