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Definitions from the Web

Credit Memo

A credit memo is a document issued by a seller to a buyer that indicates a reduction in the amount owed by the buyer. It is often used to correct billing errors or provide refunds for returned items.

Example Sentences:

• After discovering the overcharge, the customer requested a credit memo for the difference.
• The store issued a credit memo to the customer for the defective product.
• With the credit memo applied, the balance on the invoice was reduced to zero.

As a noun:

In accounting, a credit memo represents a reduction in accounts receivable or a credit to the customer's account. It is the opposite of a debit memo, which increases the amount owed.

Example Sentence:

The accounts department processed the credit memo to update the customer's balance.

As a verb:

Credit memo can also be used as a verb, meaning to issue or create a credit memo.

Example Sentence:

Please credit memo this invoice to rectify the incorrect charges.

Related Products:

To learn more about accounting practices and improve your financial management skills, consider these books available on Amazon:

• Accounting for Beginners
• Financial Management: Concepts and Applications
• Bookkeeping Made Simple: A Practical, Easy-to-Understand Guide