Credit Memo
A seller-issued document that reduces all or part of a previously invoiced amount because of a return, overcharge, allowance, cancellation, or agreed price adjustment.
Trade-credit documents for requesting supplier terms, documenting credit analysis, and adjusting previously invoiced amounts.
A Trade Credit Application requests supplier terms and a customer limit. A Credit Memorandum records analysis and a recommendation. These documents support a decision before orders are released.
After invoicing, a Credit Memo normally reduces the amount due, while a Debit Note can document an upward adjustment or a buyer deduction claim, depending on issuer and jurisdiction.
| Document | Issued or prepared by | Main purpose |
|---|---|---|
| Trade credit application | Customer | Requests terms and a limit |
| Credit memorandum | Analyst or credit function | Presents evidence, risks, structure, and recommendation |
| Credit memo | Seller | Reduces a prior invoice or creates customer credit |
| Debit note | Supplier or buyer, depending on system | Documents an upward charge or deduction claim |
Check the legal entities, signer authority, original invoice or request, supporting evidence, amount, currency, tax treatment, approval authority, posting status, and whether the counterparty agreed or disputed the record.
These pages are educational. Contract, accounting, tax, privacy, approval, and recordkeeping requirements depend on the transaction, organization, jurisdiction, and current law.
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A seller-issued document that reduces all or part of a previously invoiced amount because of a return, overcharge, allowance, cancellation, or agreed price adjustment.
A structured lending document that presents a credit request, borrower evidence, repayment analysis, risks, structure, exceptions, and recommendation for approval.
A commercial adjustment document commonly used to increase an invoiced amount after an undercharge or agreed price increase, with usage varying by jurisdiction and system.
A business customer's request for supplier payment terms and a credit limit, supported by entity, ownership, financial, banking, and trade-reference information.