Debit Note Is: Check Out the Definition, Function, Components, and How to Write It

Illustration of debit note (blickpixel/Pixabay)

YOGYAKARTA – Have you ever heard the term debit note? In buying and selling activities, a debit note is a document intended as valid proof of a transaction between a buyer and a seller.

At first glance, the function of a debit note is not much different from a regular note. However, if examined more deeply, a debit note is only used when there is a discrepancy in the goods.

So, what is meant by a debit note? Let's find out the answer in the review below.

What Debit Note Is

In the Big Indonesian Dictionary (KBBI), the word "note" is interpreted as a warning letter (appointment, note); official statement (from an ambassador to a country's government or vice versa); explanatory letter from an office (government, local government, and so on); a constant sign of sale and purchase.

While the word debit means money that must be collected from someone else; receivables; a note on a bookkeeping item that increases the value of assets or reduces the amount of liabilities; the amount that reduces the account holder's deposit at his bank.

For that, in simple terms, a debit note can be interpreted as a document intended as proof of a debt reduction transaction in a buying and selling activity.

A new debit note is used by customers when there is a discrepancy or damage to the merchandise.

In other words, a debit note is a document sent by the buyer to the seller as a statement of debt reduction or debit. Generally, this is done together with the return of goods from the related buyer.

A debit note is usually made in duplicate. One belongs to the business actor and one to the buyer.

The creation of a debit note in duplicate is not without reason. One original note is given to the seller along with the return of the merchandise that has been paid for. While the copy is kept by the buyer as proof of recording.

Function of Debit Note

Collected from various sources, here are some functions of a debit note in the buying and selling process:

Debt reduction

The main function of a debit note is to reduce debt. In this regard, the buyer can request the amount of debt reduction from the seller regarding the goods purchased. With the reduction, the buyer's debt bill will be less than the total previously agreed.

However, this is done if the goods are purchased on credit so that the seller is also required to return them. Thus, there is a reduction in debt.

Correction of the number of goods

The existence of a debit note also allows buyers to make corrections to the number of goods that have previously been agreed upon with the seller.

For example, if there is a total shortage of products sent, a debit note is useful for stating this when billing. So, buyers can show evidence and demand that the goods that should be received are in accordance with the goods.

Correction of the price of goods

Next, a debit note can also be used to correct the price of goods. For example, if there is a market company that makes the goods no longer sell or things that have been agreed upon, so that a correction is needed. The function of this debit note makes buying and selling activities more transparent and mutually beneficial.

Components in a Debit Note

The following are the components that must be included in a debit note:

• Name of the taxable entrepreneur (PKP) customer/buyer.
• Name of the PKP business owner/seller.
• Credit note number.
• Information regarding the number of products debited.
• Description of the type of product being debited.
• Product price information per item.
• Information on the total price of the product being debited.
• Date the debit note was created.
• Name and signature of the customer/buyer.

How to Make a Debit Note

Meanwhile, how to make a debit note for buying and selling activities is as follows:

• To, fill in the owner's address business/seller to whom it is addressed.
• Date, filled with the date the note was made.
• Note number, filled according to the note sequence number.
• Document date, filled with the date the item purchase transaction was made.
• Document, filled with the related product document number.
• No, filled with the item return sequence number.
• Description, filled with the product name along with other explanations.
• Total, filled with the total price of the returned product.
• Amount, filled with the total price of the product.

That is the information about debit notes. From the explanation above, it can be concluded that a debit note is a document intended as proof of a debt reduction transaction in buying and selling activities. Hopefully this information can increase the insight of loyal readers of VOI.ID.