GCECommerceBusiness Documents2021

A debit note is issued by a seller to a buyer when

Athe buyer returns goods that are in perfect condition
Bthe seller has undercharged the buyer on a previous invoiceCORRECT
Cthe buyer has overpaid his account
Dthe seller wishes to reduce the amount owed by the buyer
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Why the answer is B, and why the others tempt you.
A debit note is sent by the seller to the buyer to correct an undercharge on a previous invoice, thereby increasing the amount owed by the buyer. It is the seller's equivalent of informing the buyer that more money is due. A credit note, not a debit note, is issued when goods are returned or when the buyer has been overcharged.
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