Download free Credit Memo Templates below for your small business office.
There are three receipt templates for credit below that are available to download, customize and print for your small business office.
What is a Memo for Credit?
A credit memorandum is a document or form issued by the seller of goods or services to the buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice.
This printable memo or invoice for credit normally includes details of exactly why the amount stated on the memo has been issued, which can be used at a later time to collect information about the memos for credit to determine why the company is issuing them.
Example for Need of Credit: A buyer has returned goods to the seller. At this point, the seller would issue a memo of credit to the buyer.
Other examples of the seller issuing an invoice for credit to the consumer might be if there is a pricing dispute, marketing allowance, or other reasons why the buyer is not willing to pay the seller the full amount of the invoice. The seller would then record the memo for credit as a reduction of its accounts receivable balance, while the buyer records it as a reduction in its accounts payable balance.
If for some reason the buyer has not paid the seller yet, the buyer can use the invoice for credit as a partial offset to its invoice-based payment to the seller. If the buyer has already paid his or her invoice in full, the buyer has the option of either using the credit to offset a future payment to the seller or they could demand a cash payment in exchange for the invoice for credit.
In some instances, this credit invoice is used internally in the company to write off an outstanding receivable balance.
Click on the link to download the credit memo templates below: