Debit Note vs. Credit Note

Key Differences
Comparison Chart
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Usage
Ink
What is Debit Note?
Debit Note is the debit memo or the debit memorandum, which is issued by the purchaser to the vendor. The debit note tells the details about the amount debited from the vendor’s account and the reasons behind it are also mentioned. The purchaser sends this document to the vendor and tells him that the debit has been made to his account by the purchaser. Along with this debit note, he/she mentions the detailed reason for doing so. There can be multiple reasons for issuing the debit note; most primarily the purchaser sends this note to the vendor after he overcharges his account. The other prominent usage is when the goods bought by the purchaser are returned to the seller. In some cases, the purchaser sends the debit note after the vendor is undercharging his account due to the uncertain reasons. Most often, the debit note, which shows the positive amount is sent when the purchaser return goods on credit. The debit note is prepared like the regular invoice; it mainly tells about the debit done in the account of the seller. Other than that, it also mentions the detailed reasons for the debit made. The debit note is usually written in blue ink.
What is Credit Note?
Credit Note is the credit memo or the credit memorandum, which is issued by the vendor to the buyer The credit note gives the detailed information about the amount credited from the purchaser’s account, and also mentions the detailed reason for that. In other words, we can say that it is the answer from the vendor to the purchaser after he/she receives the credit note from purchaser’s side. The credit note is meant for the informational purpose of the buyer. The credit note is usually written in red ink. The credit note shows the negative amount as in this the account payables are reduced. The credit note can be issued for the multiple reasons, out of them, the most important are: when the buyer over charges the seller’s account, the vendor receives the goods back he sold to the purchaser or the seller undercharges the buyer.