Handling Undercharges Like a Pro
If you forget to include a line item on a bill and the client has already processed it, you cannot just send them an email asking for an extra fifty dollars. Corporate accounting departments require a paper trail for every cent that leaves their bank account.
A debit memo template solves this. It acts as an official extension of the original invoice. By issuing a debit note, you are essentially saying "Invoice #120 is mostly paid, but here is an official document for the missing balance." It keeps the books clean and prevents awkward back-and-forth emails.
How to Properly Issue a Debit Note
You want to make it as easy as possible for the client to understand why they owe more money. Follow these rules when filling out the generator:
- Use a Unique Debit Note Number. Like invoices, these need to be tracked. Start with something like "DN-001" to differentiate it from your standard bills.
- Reference the Original Mistake. This is critical. In the first line item, write "Additional charge related to Invoice #1042." If you leave this out, the client will think you are double-billing them.
- List Only the Missing Items. If the original invoice had 10 items and you forgot the 11th, do not list all 11 items on the debit note. Only list the 11th item and its cost.
- Add an Apologetic Note. In the notes section at the bottom, a simple "Apologies for the omission on the original invoice, please remit this remaining balance at your earliest convenience" goes a long way in preserving the client relationship.
The difference between Debit Notes, Credit Notes, and Invoices
It is easy to get these accounting terms mixed up, but using the wrong one will cause major headaches come tax season.
If you charge too much, you issue a credit note to give money back or wipe out a debt. If you charge too little, you issue a debit note to request the remaining money. Both of these documents are tied to a standard invoice that was already sent.
If the client simply hasn't paid the original bill and the due date has passed, you don't need a debit note. Instead, you should send an overdue invoice reminder. And once the client pays the remaining balance from your debit note, you can finalize the transaction by sending them a payment receipt.
Frequently Asked Questions
What is a debit note?
A debit note (or debit memo) is a formal document sent by a seller to a buyer notifying them that they owe more money than what was originally billed on an invoice. It legally adjusts the amount owed upwards.
When should I use a debit note instead of a new invoice?
Use a debit note when the extra charge is directly related to a previous invoice. For example, if you billed them for 5 items but actually shipped 6, or if you forgot to include a shipping fee. If the charge is for a completely new, unrelated project, just send a new invoice.
How do I use this debit note generator?
First, you must reference the original invoice number in the description so the client knows what the charge is related to. Then, list only the additional costs that were left off the original bill. Do not re-list the items they already paid for.
Can I use a debit note to charge late fees?
Yes, some businesses use a debit note to formally add late payment penalties to a client's account. However, an overdue invoice reminder is often clearer for the client if they just missed a deadline.
Is this tool completely free to use?
Yes. You can generate, customize, and download as many debit notes as you need without creating an account or paying any fees.