Businesses use debit notes and credit notes as official documents for accounting sale return and purchase return transactions. These notes inform the buyer how much credit they have or how much further they owe to the vendor. To understand the difference between debit note and credit note, you need to know their meanings correctly. In this article, we have compiled all the important differences between the two terms along with their meanings. Learn how to use debit notes and credit notes to adjust accounts in case of returns, errors, or changes. Compare their issuer, recipient, purpose, impact, and format with examples and FAQs. Learn the difference between debit note and credit note, when and how to issue them, and their impact on GST return and tax liability. A debit note increases the tax amount and a credit note decreases it in case of changes in the original invoice.
