This Design Note describes the theory and application of difference imaging for automated validation of planet candidates in the Data Validation (DV) CSCI. This is one of the diagnostic tools employed in DV for planet candidate validation. The other DV diagnostics are described in separate KADNs and in the reference documents listed below. This document describes the difference image generation process, PRF-based centroiding of the out-of-transit and difference images, computation of quarterly centroid offsets and associated uncertainties, and determination of robust weighted mean centroid offsets/uncertainties over all available quarterly data sets. PRF-based centroiding is performed with calls to a library of functions that is shared with thePhotometric Analysis (PA) and Photometer Data Quality (PDQ) CSCIs. The centroiding library will be the subject of a separate Design Note.