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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. 1. Header & reference
    'Debit Note' title, unique number, date and reference to the original invoice or shipment.
  2. 2. Parties
    Buyer (issuer) and seller (recipient) with tax registration numbers.
  3. 3. Reason for debit
    State the reason: short delivery, demurrage recovery, quality shortfall, additional cost pass-through.
  4. 4. Amount
    Debit amount and currency, plus tax adjustment if applicable.
  5. 5. Signature & bank details
    Authorised 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.
Get the template

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)