[1] Debit note acts as the Source document to the Purchase returns journal.
[2] In other words it is an evidence for the occurrence of a reduction in expenses.
[3] Debit notes are generally used in business-to-business transactions.
Such transactions often involve an extension of credit, meaning that a vendor would send a shipment of goods to a company before the goods have been paid for.
Rather, debits and credits are being logged in an accounting system to keep track of inventories shipped and payment.