Published on: May 10, 2022Last Updated: April 4, 2023by Jeel Patel A monetary obligation should be paid on time. Or at least, the customer should be well-informed about how much money you owe to him/her. After all your brand is at stake. There will be times when you might even forget how much you owe to a particular customer. That’s where a well-structured credit memo template comes to the rescue. Along with the business name, several other components are essential to fill up credit memos. But what if you get a ready-made Credit Memo Template? Forget the hassle of remembering all the components; just create a credit memo using several pieces of information. This article is all about introducing you to the ready-made credit invoice template. Besides, there are several reasons to issue a credit memo. So make sure you know all of them so that you can mention them while creating one. Table of Content When Should You Use a Credit Memo? Essential Information (Components) Required for Credit Memo Template Credit Memo Templates How to Create a Credit Memo? FAQs Conclusion When Should You Use a Credit Memo? There are a few scenarios when you are required to create a credit note. And knowing the reason is essential. So in what scenarios will you generate credit memorandums? Return of a few or all purchased goods by the buyer Return of the defective, wrong color, or size products Change in requirement by the buyer from the seller Overstated invoice Change in the price Improper application of discounts or discounts not at all applied Spoiled or damaged goods delivered So, these are the reasons you can mention either in notes or explicitly mention as a reason for the credit. Now that you know one of the crucial factors for creating a credit memo, let’s also know the rest of the components. Essential Information (Components) Required for Credit Memo Template Before creating a credit memorandum in a ready-made credit memo template, you are required to compile the following piece of information. With the information handy, you would not only be able to create a credit memo in half the time but would also minimize the chances of errors. It is similar to a sales invoice that you might be preparing in your day-to-day life. Gather the following data before creating a credit memo: Date of Purchase Purchase Order Number Shipping Address Payment Terms & Bills Quantity of Each Item Total Value Total Discounted Value Now that you have things handy, you can start filling up the credit memo default template. Just sign up with your email ID, start using the free template, and send when done. For your reference, we have also attached a screenshot of what a credit memo looks like. Credit Memo Templates Here are the free credit memo templates to download and get things done. Use these templates to prepare a credit memo in a fraction of seconds and unload yourself from the burden of manually creating one. So this is how you would be able to save time and focus on other important areas of business. Since manually creating a credit note is time-consuming, InvoiceOwl software would make it easy for you. Have a look at the video in the next section. Word Doc of Credit Memo Template Download How to Create a Credit Memo? You are just a video away from actually creating a credit memo. So let’s know how the software works. Signup/log in using your credentials Add client by filling up basic information like client name, company details, website, email ID, add phone, and billing address Add items, quantity, rate, and tax Add reason for creating a credit note Add photos or attachments Lastly, save it Once you save the credit memo, you would be able to share it with your client via email. That’s how you quickly create a credit note in the shortest possible time. Fill up the information in a ready-made credit memo template and just share it. Try our free online credit memo generator today! Whether your business is in construction, landscaping, consulting, photography, auto repair, or the medical field, invoicing takes way too long. That’s why we’re here. InvoiceOwl makes your invoicing faster and simpler so you can get paid promptly and without the hassle. Get Started Now Frequently Asked Questions What is a credit memo example? Company A (seller) delivers goods worth $500 to company B (buyer). During the transit, goods worth $100 get damaged and B received 1/5th part of the damaged goods. A returns those damaged goods to the seller company against which the latter party would issue a credit memo. It is an assurance from A to B that they owe $100 and are accountable to either pay in cash or goods in future transactions. Is there any difference between debit and credit memos? Yes, there is a huge difference between credit and debit memos. In a nutshell, it includes different parties, transactions, document types, purposes, and modes of payment. What is the difference between a credit memo and a sales invoice? A sales invoice is issued when the customer pays the money for goods purchased. On the other hand, a credit note is issued when the customer is dissatisfied with the products or service and returns or asks for refunds. Conclusion A credit memo is issued when there is a business transaction between buyers and sellers. Preparing and sending is a tedious task and that’s the reason millions of businesses have started opting for creating credit notes online through software like InvoiceOwl. Did you? Signup For a FREE Trial from your account and check out how quickly you can create credit memorandums. Author Bio Jeel Patel Founder Jeel Patel is the founder of InvoiceOwl, a top-rated estimating and invoicing software that simplifies the invoicing and estimating processes for contractor businesses. Jeel holds a degree in Business Administration and Management from the University of Toronto, which has provided him with a strong foundation in business principles and practices. With understanding of the challenges faced by contractors, he conducted extensive research and developed a tool to streamline the invoicing and estimating processes for contractors. Read More Sign Up Now! Get weekly updates from InvoiceOwl. Subscribe Now Share this post: Twitter Facebook Pinterest Linkedin Email