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Glossary / Also known as

Credit memorandum

Another name for Credit Note.

Other names
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What does credit memorandum mean?

Credit memorandum is another name for Credit Note. A credit note is a document issued by a seller to a buyer reducing the value of a previously issued invoice, typically due to returns, pricing corrections, or deficiency in services.

The two names mean the same thing. You will see "credit memorandum" in some ledgers, reports and contracts and "Credit Note" in others. The full entry covers how it works, with examples.

Read the full definition of Credit Note

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From the glossary

Related terms.

Accounts receivable Credit Note A credit note is a document issued by a seller to a buyer reducing the value of a previously issued invoice, typically due to returns, pricing corrections, or deficiency in services. Also called credit memo, credit memorandum Accounts payable Accounts Payable (AP) Money a business owes to its suppliers and vendors for goods or services received but not yet paid for. Also called trade payables, sundry creditors, payables Input tax credit Input Tax Credit (ITC) A mechanism that allows businesses to claim credit for GST paid on purchases and expenses, reducing their overall output tax liability. Also called input credit, GST input credit, input tax credit under GST GST basics GST (Goods and Services Tax) India's unified indirect tax that replaced multiple central and state levies, creating a single national market for goods and services. Also called Goods & Services Tax E-invoicing E-Invoice A GST invoice authenticated in real time by the Invoice Registration Portal and assigned a unique Invoice Reference Number (IRN) and QR code. Also called electronic invoice, e-invoicing, GST e-invoice Accounts receivable Accounts Receivable (AR) Accounts receivable represents the outstanding invoices and money owed to a business by its customers for goods or services delivered on credit. Also called trade receivables, sundry debtors, receivables
From the blog

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AR Order to Cash (O2C) Process: Steps, Cycle and KPIs The order to cash (O2C) process covers every step from a customer order to collecting and recording payment: order, credit, delivery, invoicing and collections. OneFinOps Editorial 3 min AR What is DSO? Days Sales Outstanding Formula and Example DSO (days sales outstanding) is the average number of days a business takes to collect payment after a credit sale. See the formula, example and how to cut it. OneFinOps Editorial 3 min AR What is an AR Aging Report? Format, Example and How to Read It An AR aging report lists unpaid customer invoices grouped by how long they are overdue: 1-30, 31-60, 61-90 and 90+ days. It shows which balances to chase first. OneFinOps Editorial 3 min
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