Glossary
What is a credit memo?
A credit memo (or credit note) is a document a seller issues to lower the amount a buyer owes. It is used for returns, overcharges, damaged goods, or an agreed discount after the fact. It does not move money on its own; it offsets an existing or future invoice.
When a credit memo shows up
Say a supplier invoiced you for 100 units but 10 arrived broken. Instead of reissuing the whole invoice, they send a credit memo for the 10, and you pay the difference. Same idea for a billing error or a late discount.
Why it needs care in the books
A credit memo has to be matched to the invoice it corrects, or your records overstate what you owe. Getting the vendor, reference number, and amount right is the whole job.
InvoiceJet extracts those fields with a confidence level and a citation on the document, so the numbers you reconcile a credit against are verified rather than eyeballed.
Common questions
Is a credit memo the same as a refund?
No. A refund returns money. A credit memo reduces what is owed and is usually applied against an invoice, though a supplier may later refund a leftover balance.
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