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What is meant by credit memo?
A credit memo is a commercial document issued by a supplier to the customer notifying the reduction of the amount that a customer owes to the seller. If it is a cash sale, it implies the amount of benefit that the supplier owes to the customer.
What is credit memo with example?
A few examples of a bank credit memo appearing in a company's bank account include: The bank adding interest that was earned for having money on deposit. The bank having collected a note for the company. A refund of a previous bank charge.
What is a credit memo in accounts payable?
The credit memorandum definition or memo is a form or document, sometimes called a credit memo invoice, that informs a buyer that the seller will be decreasing or crediting the amount that the buyer owes in accounts payable, thus decreasing the amount of accounts receivable in the seller's account.
What is credit memo in bank reconciliation?
Credit memos reflect additions for such items as notes collected for the depositor by the bank and wire transfers of funds from another bank in which the company sends funds to the home office bank. Check the bank debit and credit memos with the depositor's books to see if they have already been recorded.