Note: Debit adjustments are given to the operational
entities only at account level, but not at charge level.Debit note is an amount which debits customer /operational entity account through adjustment. It is the post-invoice debit adjustment given towards a charge or account. It is used for billing corrections.
Through debit notes, amount is taken from the accounts of a customer or an operational entity . Debit notes are given to a party in the following two ways:
Account level: When the debit note is given towards an account, the effective dues of the customer or operational entity increases. In such case, the adjustment amount is debited from the party at account level.
Charge level: When the debit note is given towards invoice charges, the adjustment is given to individual charges in an invoice. If credit note is towards charges, the effective charge price increases. In such case, if there is any tax associated with, then the tax amount is calculated and affected.
Note: Debit adjustments are given to the operational
entities only at account level, but not at charge level.
For example:
If a customer has paid an amount of Rs.200 towards a service, but due to some reasons like penalty, etc. the customer is supposed to pay an extra amount of Rs.25, then a debit note of Rs.25 is generated to adjust this amount.