A debit note format for goods return is a design of a formal debit note that contains the information which is sufficient and acceptable for notifying about the return of the goods along with a proper justification behind the recovery. The format can vary as per the company requirements, the type of goods, the reason behind the return, and the legal acceptability. The format is designed in consideration of the requirements, and the template is customized as needed, whenever a debit note is to be issued.
When a buyer buys the goods, the transaction may be on a cash or a credit basis. In the latter case, the seller records him as a debtor, and the buyer records the seller as a creditor in his accounting records. A person or a client organization issues this sort of debit note, that has purchased goods/products from a seller organization and wants to return them. It is issued to the seller of the goods. It serves the purpose of formal notification by a client about the return.
A purchaser may want to return the goods for various reasons, such as:
- All or some of the goods are faulty, and the purchaser wants a refund.
- The delivered goods were more than the ordered quantity.
- The actual delivery date exceeded the promised delivery date, and the purchaser does not need the goods anymore.
When the received goods are to be returned, and the refund is to be demanded, a debit note is sent by the buyer to the seller. The format of such debit notes can vary as per the acceptability requirements of the organization, seller, auditors, court. However, generally, the following details are included in the template of these debit notes:
- Date.
- Debit note number
- Invoice number or reference number of the purchase.
- Details of the receiver.
- Details of the issuer.
- Product description.
- Quantity.
- Purchase price.
- Any additional charges.
- Reason of return.
- Remarks, comments instructions or disclaimer, if any.
- Signature.
As these debit notes are formal documents, if there is a valid reason behind the return of the goods, the seller has to accept it and make the refund within the specified period. Otherwise, the buyer may take legal action against him, and use this debit note as evidence, which may cost him a lot of money.
Therefore, usually, the sellers make the refund after receiving these debit notes and reduce the value of the debtors in their accounting records. This would decrease the number of their assets by twice the value, as their debtors (an asset) are being reduced as well as the cash (another asset) is being used to make the refund payment.
Furthermore, the debit notes are kept in the records and may be used for various references in the future, in addition to the legal references. The auditors of both the buyers and sellers consider such debit notes during auditing.
Sample Debit Note
This debit note is written regarding order no X placed on 20th October 20xx and received on 23rd October 20xx. The order of some office furniture was placed including 3 sofa sets, 5 center tables, and 20 chairs. The payment was to be made after the delivery.
It is regretfully informed that the order received is faulty and damaged. Instead of 3 only two sofas are delivered and out of 20, 4 chairs are broken from the arm. The fault was in the make or probably it happened because of the negligence in delivery, we could not decipher. Since the payment was not made before the delivery hence I am not claiming to refund it. However, the total amount of the bill was X $ but now only x $ are payable.
Also, it is requested to get the third sofa set delivered so I may release the amount of all other products too. We are throwing a successful business party on 31st October 20xx. The furniture is to be used at the party so I request you to please send it before 31st October 20xx. The pictures of the broken items are attached with this note for your convenience.
I am sending back the 4 damaged chairs with your delivery boys. We are your regular customer. We always order our office furniture from you. All the deliveries are excellent and on time. Also, we never faced such an issue in past with our previous business dealings. Hopefully, we will not face it in the future also.
I expect you would look into the matter soon and maintain a quality standard for the next orders. Many thanks.
Regards,
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