Credit Memo
The Accountant's Dictionary
Fri, Jun 19, 2026
A credit memo is a document that reduces the amount a customer owes or the amount payable to a supplier.
What Credit Memo means in business operations
Credit Memo is explained here in the context of real finance, payroll, HR, and ERP workflows. This definition is written for business users who need practical understanding that supports implementation, reporting, approvals, reconciliation, and policy decisions.
If you are reviewing related concepts, continue to the The Accountant's Dictionary, browse ERP articles on the Eprecus blog, or explore the Eprecus ERP platform overview.
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Credit Memo
A credit memo is issued when an invoice needs to be reduced because of returns, pricing corrections, service issues, or negotiated adjustments. It offsets an existing receivable or payable balance.
Why it matters
Proper credit memo control protects revenue integrity, tax accuracy, and customer or supplier reconciliation.
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