A debit note and an invoice are similar, as both transactions typically debit accounts receivable and credit revenue (sales), however they serve different purposes in Dispatch Science:
Invoice
Purpose: The carrier issues an invoice to its client to request payment for goods or services provided. The invoice details the items sold, their quantities, prices, and the total amount due.
Usage: It is used to record a sale and request payment from the buyer.
Timing: Issued at the time of or after the delivery of goods or services.
Debit Note
Purpose: A debit note is used to inform a buyer of an adjustment in their account, usually due to an error in the original invoice or to account for a deposit for future services. The debit note can be configured to credit the income statement or the balance sheet.
Usage: It is used to increase the amount owed by the buyer, correcting undercharges or accounting for future services.
Timing: Issued after the original invoice when there is a need to adjust the amounts previously billed, such as missing accessorials or fuel surcharge. Alternatively, issued ahead of an invoice to reflect a deposit or advance charge for future services, such as warehousing fees.
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