A credit memo is a commercial document which is 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. It is also known as credit note or just credit. Generally it is sent by the seller to its customers with an intention to indicate the products, quantities, qualities, individual amounts and total amounts due towards them. This document can also be issued in case of errors or allowances as well as drafted like an invoice. A credit memo template will include some basic information such as business information, customer information, date, quantity, product number, description, unit price, line total, and totals. Signatures of the concerned salesman must be included as well.
The credit memo may known as a financial document which generate by business during the proceedings of transactions. Well, here we can call it as a credit note which may use as a source for providing evidence of transaction. No doubt, this document will generate when a credit entry has been made by the credit handler. This will cover the financial records & make sure that for what reason a specific transaction was made. Apart of this, a credit memo will support the both parties who involved in deal, seemingly it will officially explain on the face of business how the entry of credit was takes places. In like manner, a credit memo template can also recognize as a credit note, as a credit memo or credit memorandum. So, the pivotal reason for having this document is to notify about the entry made in the financial records of party while the procedure of transaction.
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