What is a debit memo?
submitted by PKG

KJ

It's a way to adjust a client account. This could be the bank adjusting your account (taking money out for a late fee), or you adjusting an account receivable. In the latter case, it's essentially a write-off. A client paid you $1,400 on a $1,500 invoice and you just want to clear it up and be done with them. You would make a debit memo to offset the $100 they still owe you.