Credit Memo Templates
The phrase credit memo may be new for folks however is a very common and important term in business. Credit memo or notes are of two types. A credit memo or note is a document that is written by a company to its customers in case when the company made some mistake. The purpose of writing a credit memo is to notify the customers and therefore it should be simple, clear and concise. In most cases when a buyer finds a product defective among the numbers of products they deal with the company, buyer informs the company and the company issues the credit memo.
The second type of a credit memo is a document that is issued by the bank to its customer in order to inform the customer or bank depositors that his/her net balance is increased due to a transaction or event other than making deposits. For example when a bank collects the receivables of its customer then they will issue a credit memo to inform their customer about the activity and the net balance.
Information that should include in a perfect credit memo
Basic information about the sender
On the top of the paper or sheet, the sender or designer of a credit memo should write the heading of “credit memo”, then should write important information including the name of the business or bank, address, contact details like phone number, fax and email, website URL and the identification number of taxes.
Provide customer or depositor’s information
At the right side of the credit memo sheet, provide important and basic information about the customer or the depositor. If your customer is a business, then write the name of the business, the code of identification you use in your company for that customer and the contact information. For a bank credit memo write the name of the customer and contact information.
Write all other informative codes or number highlighted
Highlight the issuing date and the unique credit memo number that you have assigned, the invoice number and the payment terms. In bank related credit memo, it is important to include the original invoice number and reference number about the transaction, payment mode like cash or installments etc.
Include information related to the product (for business related memos only)
Provide the information related the credited items like quantity, item identification number, description of the items like its features etc, the price of the item and the reason of crediting. It is good to make separate columns for writing all this information for making it more understandable. Provide proper headings for each column.
Sum the prices of all the items and highlight them with a heading of sub total. Then add all the sales taxes amount to the subtotal amount and highlight the answer as total.
Review the credit memo thoroughly before sending it out. Check spelling errors, grammatical errors and tone of the document. Also check that you have provided all the information related to you and your client accurately.