How to Create a Debit Memo Letter


A debt memo or a credit debt memo are invoices used by suppliers to correct a discrepancy in a transaction. In the business world, they are necessary tools for proper bookkeeping procedures and accurate fund allocation. Creating one on your own, especially if you own a small business or find yourself only rarely in need of a debt memo, can be cost-effective and efficient.

Learn about credit debit memos. A debit memo is a document created by a supplier that shows and additional amount is owed due to an error in calculation. This document is used regardless of the side of the transaction on which the error has occurred. A credit debit memo is often created as a result of a customer complaint.

Decide when to use a credit debit memo. You may need to create more than one debit memo for various situations that arise. For instance, damaged goods, in which the customer is owed money is one type of situation that may need one specific form, whereas when a customer is undercharged and the supplier is owed money, an addition form might be necessary. Deciding for what instances you wish to use the form and if you will be using different forms for different situations is the first decision that needs to be made in the creation of the actual credit debt or debt memo.

Create a credit debit memo. Use the business format for a basic memo--header, body and footer. Include the customer’s name and contact information, including the reason for the memo, the product in question, the quantity affected, the invoice number and the receipt number. It is a good idea to number the memo as well, so those responsible for accounting can easily match receipt, invoice and credit debit numbers, should the need arise.

Include in the credit debit memo the money owed to the client (or the debit owed you), explaining exactly what is owed and why.

Determine if a pre-printed form would best suit your business needs. Pre-printed forms make it much easier to deal with the burden of credit debt memos. Shopping online or at places such as Office Depot and Staples for stationary to fit your office needs is an option if this is a task that your business does often.

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