Free Debit Note Template
A ready-to-edit Debit Note format for post-shipment charges | demurrage, off-spec penalties, price escalation and reimbursable expenses under the SPA.
What this template includes
This Debit Note template includes: Header, Reason, Adjustment, Settlement.
- Header
- Reason
- Adjustment
- Settlement
Clause summaries are drafting guidance, not legal advice. Have the final document reviewed under its governing law.
Quick Summary: Debit Note
What this document is, and is not
This DN is a commercial drafting template that records what the parties intend or have agreed at one stage of a deal. It is not a bank instrument, not proof of product or funds, and not a substitute for qualified legal counsel in the governing-law jurisdiction.
Typical deal sequence: CIS → LOI or ICPO → SCO/FCO → SPA → LC/SBLC.
Next steps: price the payment instrument with the LC Cost Calculator, agree the delivery term with the Incoterms 2020 cost and risk split, and prepare documents with the LC documents checklist. Background: letter of credit guide.
A Debit Note is a post-shipment adjustment that adds to what the counterparty owes. Common triggers are demurrage per statement of facts, off-spec penalties per SPA clause, provisional-to-final upward price adjustments and reimbursable inspection or agency fees.
This template captures the debit note number and date, SPA reference, original commercial invoice number, reason for the debit (with contract clause reference) and the adjustment calculation. It settles by direct remittance or offset against the next shipment invoice.
Backed by objective evidence (SOF, SGS report, price formula), a well-formatted Debit Note survives dispute far better than an email demand. The DOCX is fully editable; the PDF is a print-ready sample.
Numerical Example: DN Utilization
Typical application of the DN in a standard bulk commodity transaction. Use TradeDox Pro for auto-drafting LC-compatible clauses.
What's inside
- Post-shipment charge - adds to what the counterparty owes.
- Common causes: demurrage, off-spec penalty, price escalation, reimbursables.
- Always references the original SPA and commercial invoice.
- Backed by objective evidence (SOF, SGS report, price formula) to survive dispute.
Document preview
Frequently asked questions
Where can I download a free Debit Note template?
This page provides a free Debit Note in Word (DOCX) and PDF format. Sign in to download the DOCX; the PDF preview is public.
When do I issue a Debit Note?
For demurrage per statement of facts, off-spec penalties under the SPA, provisional-to-final upward price adjustments and reimbursable third-party costs (inspection, agency, port dues).
Is a Debit Note legally enforceable?
Yes when supported by objective evidence | statement of facts for demurrage, SGS/Intertek report for off-spec, price formula calculation for provisional-to-final | and issued against a valid SPA and invoice reference.
Debit Note vs Credit Note?
Debit Note adds to the amount owed; Credit Note reduces it. Debit Notes cover extras and penalties; Credit Notes cover allowances and quality claims.
Who can issue a Debit Note?
Either party depending on the trigger. Sellers typically issue for provisional-to-final price escalation and reimbursable costs; buyers typically issue for demurrage against sellers and off-spec penalties.