Debit Invoice
A document that increases the amount owed by a customer for additional charges.
Definition
A debit invoice (or debit note) is issued when additional charges need to be added to a customer's account after the original invoice was sent. Common reasons include undercharges on the original invoice, additional services rendered, price adjustments due to contract terms, or shipping cost corrections.
Like credit invoices, debit invoices reference the original invoice and maintain a clear audit trail. They're the proper accounting method for increasing charges rather than modifying original documents.
Why It Matters
Debit invoices ensure transparent billing when circumstances change after the initial invoice. They're particularly important for project-based work where scope changes frequently, or for businesses where pricing depends on actual usage that isn't known until after the invoice period.
Using debit invoices maintains customer trust because changes are clearly documented rather than appearing as unexplained increases on future invoices.
Examples
- 1
A moving company issues a debit invoice for $150 after the actual shipment weight exceeded the estimate used in the original invoice.
- 2
A consultant issues a debit invoice when a project scope expansion is approved mid-project, covering the additional hours worked.
- 3
A supplier issues a debit invoice when currency exchange rate clauses in the contract result in a price adjustment.
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