Creating a debit note is necessary when returning products that were given on credit. Or it may be done by the seller when informing the customer of current financial responsibilities. The debit notice may include details about a future invoice or act as a reminder for money that is already past due. It is essential to have a format for the debit note. We know that Microsoft Excel has amazing tools, features, and some built-in functions. So this application would be the best for creating a debit note. We can easily create a tally debit note format in Excel.
What Is a Debit Note?
Debit notes are also known as debit memos. They are essentially a sort of negotiable instrument that is sent from one party to another party. In this case, the seller to the buyer, in order to request a credit note. Given that it is a legal agreement, it is professional and often used in practically all sorts of companies. This fantastic application may also be used in lieu of invoicing by the seller, which is another fantastic application. So, it’s mainly a written notice of existing financial commitments given from a sales perspective.
Step-by-Step Procedures to Create Tally Debit Note Format in Excel
In the event of a sale error, debit notes serve as invoices for the transactions. Variations in the number of things or product returns by the customer are two examples. It is necessary to gather and preserve this note since it is crucial to the industry’s buying and selling processes. So, let’s follow the procedures to create a tally debit note format. In this article, we will manually create the tally debit format instead of using the Excel Add-In.
Step 1: Insert Company Name & Address
To make a tally debit note format firstly we will put some information.
- Firstly, insert the name of the company.
- Then their address, which specifies where the organization is located. The address is to mark the direction of the company. So, if someone wants to visit there, they can easily find the place.
Step 2: Set Details of Order
Now, we need to set the details of the total orders.
- In the first place, in column H4 we just put the serial number, and we indicate the serial number as Sr. No.
- Secondly, input the date in column H5. For the date, we use the TODAY function, as we are making an up-to-date debit note format.
- Thirdly, write down the reference of the purchase order number in column H6.
- The reference of the purchase order number, Po Ref. No. A purchase order number is a special identification code given to a purchase order, which serves as a formal declaration of a customer’s desire to make a purchase from a vendor and describes the specifics of the transaction.
- Then, just put the purchase order date in column H7.
- Next, we just place the payment terms. The payment term is paperwork that specifies how and when consumers will pay for their products or services.
- In this case, the payment terms are N/30.
- Here, N denotes the net, that the entire sum is expected to be paid. Net 30 on an invoice denotes that payment is due thirty days from the date of the invoice. It indicates that the customer has 30 calendar days to make payment after invoicing.
Step 3: Input Characteristics
At this point, we will input all the characteristics for making the debit note.
- In the beginning, we assemble the serial number. For the serial number, we use the combination of the IF function and the COUNTA function. If the description has some information then the serial will be allocated automatically.
- So, in cell B10 insert the formula.
- Press the Enter key on your keyboard.
- After that, you will be able to see the result in the selected cell and the formula will appear in the formula bar.
- Further, to copy the formula over the range, drag the Fill Handle down. Or, double click on the plus (+) sign to AutoFill the range.
- Now, set all the information one by one. The description for all the products. The HSN is the Harmonized Method of Nomenclature, which is a system for categorizing products.
- Also, we put the quantity, which is abbreviated as Qty, which implies the number or quantity of anything.
- Finally, the price of a single product or service. Mainly, the unit price of each product.
Read More: Balance Sheet Format in Excel with Formulas
Step 4: Calculate Total Debit
In this step, we will calculate the total price of the individual service and subtotal also the total of the whole service including the discount.
- Firstly, select cell H4 then, multiply the unit price with the quantity to calculate the total of every service. Simply, use the formula.
- Secondly, press Enter to see the result in that selected cell.
- You will now be able to analyze the data in the selected cell, as well as the formula in the formula bar.
- Now, drag the Fill Handle down to duplicate the formula over the range. Or, to AutoFill the range, double-click on the plus (+) symbol.
- To compute the subtotal we utilize the SUM function. So, choose the cell and enter the formula there.
- Press the Enter key from your keyboard.
- And, we get a discount of $15,000.00.
- Further, for the total, we simply subtract the discount from the subtotal. So, in the selected cell insert the formula for subtraction.
- Finally, press the Enter key to finish the procedure.
Read More: Schedule 6 Balance Sheet Format in Excel
This is the last and final step.
- To create in the debit note format is the total tax amount the invoice amount and the signature of the authority.
- And, that’s all.
Things to Remember
- The debt is an accountancy statement that decreases assets or cost category.
- Or reduces a capital or liabilities account. From an accounting point of view, it is placed on the left.
- Debit is what we receive.
- It subtracts all costs and losses.
- Pay the recipient back.
You can download the template and practice with them.
The above procedures will assist you in creating the Tally Debit Note Format in Excel. Hope this will help you! Please let us know in the comment section if you have any questions, suggestions, or feedback.
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