How to Write a Debit Note
Follow these steps to draft a Debit Note that survives counterparty review, bank scrutiny and, if needed, ICC arbitration. Grab the free Debit Note template at the end.
Step-by-step
- 1. Header & reference'Debit Note' title, unique number, date and reference to the original invoice or shipment.
- 2. PartiesBuyer (issuer) and seller (recipient) with tax registration numbers.
- 3. Reason for debitState the reason: short delivery, demurrage recovery, quality shortfall, additional cost pass-through.
- 4. AmountDebit amount and currency, plus tax adjustment if applicable.
- 5. Signature & bank detailsAuthorised signature and remittance bank details.
Common pitfalls to avoid
- Leaving placeholder text like [ ] or {seller name} in the executed copy.
- Missing signature date, or signing outside the validity window quoted on the document.
- Referencing Incoterms without the year - always cite 'Incoterms 2020'.
- Omitting the arbitration seat and governing law - defaults vary by country.
Free template
Free Debit Note Template
Free Debit Note template in Word and PDF. Post-shipment adjustment draft for demurrage, off-spec penalties, price escalation and reimbursable expenses.
How to Write a Debit Note: Quick Overview
Follow these steps to draft a Debit Note that survives counterparty review, bank scrutiny and, if needed, ICC arbitration. Grab the free Debit Note template at the end.
Numerical Example: How to Write a Debit Note Step-by-Step
Key pitfall to avoid: Leaving placeholder text like [ ] or {seller name} in the executed copy.
1. Header & reference'Debit Note' title, unique number, date and reference to the original invoice or
2. PartiesBuyer (issuer) and seller (recipient) with tax registration numbers.
3. Reason for debitState the reason: short delivery, demurrage recovery, quality shortfall, additio
OutcomeFollow all steps in order for best results
Source: SSLT Global Editorial - How to Write a Debit Note
Last reviewed: October 2026
FAQ
Who issues debit notes - buyer or seller?
Usually the buyer, to charge the seller for post-shipment issues. Sellers use invoices, not debit notes.
Can a debit note be netted against a future invoice?
Yes, if both parties agree. State the netting mechanism in the SPA to avoid disputes.
Other how-to guides
How to Write a Sales & Purchase Agreement (SPA)How to Write a Letter of Intent (LOI)How to Write a Irrevocable Corporate Purchase Order (ICPO)How to Write a Full Corporate Offer (FCO)How to Write a Soft Corporate Offer (SCO)How to Write a Non-Disclosure Agreement (NDA)How to Write a NCNDA (Non-Circumvention, Non-Disclosure)How to Write a IMFPA (Irrevocable Master Fee Protection)