Debit note management

[svanteschubert]

Background

Debit notes

French Use Case n°18: Debit note management

Definition and principle :

A debit note is not an invoice. A debit note is a document issued by a seller to a buyer, stating an amount owed by the latter to the former. In principle, if accepted by the customer, the debit note will or should give rise to an invoice.

According to this definition, the debit note does not fall within the scope of electronic invoicing and does not have to be sent to the authorities. An invoice relating to this transaction should have been sent.

This does not apply to debit notes that are treated as invoices if they are subject to VAT and contain all the required information (e.g. re-invoicing to a joint venture), which can therefore be processed.

If the debit note is issued by the buyer and shows a debt owed by the seller to the buyer, then the seller should issue a credit note.

In practice, a debit note can also be issued by the buyer. In the same way, the debit note should result in a credit note issued by the buyer (self-billed credit note), if the latter has an invoicing mandate.

In these cases, the platform will transmit the assets :

• A credit note issued by the supplier,
• A credit note invoiced automatically by the buyer.
• A factoring credit
• Self-billed credit factoring
• A credit note for a down-payment invoice

NOTE: The text/pictures of this use case no. 18 were taken from the French government site! The text was extracted from V2.3 - deepl English DOCX and any pictures were taken from V2.2 - original English PDF)

[edmundgray]

Debit Notes would typically be issued to correct an existing invoice. Credit Notes are also used for this purpose. Credit Notes would typically reduce the amount to be paid whereas Debit Notes would increase it. However it is at the discretion of the issuer whether to use a Debit or Credit Note or issue a correcting invoice.

[edmundgray]

Debit Notes would typically be issued to correct an existing invoice. Credit Notes are also used for this purpose. Credit Notes would typically reduce the amount to be paid whereas Debit Notes would increase it. However it is at the descretion of the issuer whether to use a Debit or Credit Note or issue a correcting invoice.