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Hello Sir, hoping you will be fine.
Sir my question was that why we use debit note instead of new invoice. Like as we have studied that debit note is used by supplier to increase original invoice. So why we do not use a new invoice instead of debit note.
Thank you.You are correct: why have a whole additional set of documents that do what invoices do? They are rare but might be preferred in certain internal control systems. For example, to issue an invoice to a customer the normal sequence would be:
Receive order and approve order
Despatch goods
Issue invoice.Usually you would expect it to be possible to link these three documents to ensure orders were despatched and invoiced and anything invoiced was based on an order. However, if an extra charge is needed to, for example, correct a price that was too low, there will be no order or despatch for the additional charge. So, it might be easier to deal with these adjustments using a separate system. The debit note should be approved and be supported by explanations about why it is needed.
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