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Cash memos. Cash memo format includes item names description unit unit price tax discounts and net amount with tax and without tax. Conversely an instrument indicating cash payment made for the merchandise is known as a cash memo. Similar to a receipt a cash memo is given to a client or customer after a payment has been received by the business.

A cash memo is a written document commonly used in many business transactions. The meaning of cash memo is actually a document which a vendor gives to the purchaser in the course of a certain buying of services or goods. The purpose of a cash memo in a business is to have a record of all the transactions of goods and services.

It is the equivalent of an invoice and is only used to record transactions that are paid for using cash rather than bank transactions or checks. The definition of cash memo is a document that a seller passes to a buyer at the time of a specific purchase of goods or services. The difference between invoice and cash memo can be drawn clearly on the following grounds.

The contents of cash memo are same as of invoice. This is the same as a bill and it is only used to keep track of purchases which are paid out for using cash instead of traditional bank transactions or checks. When the goods are purchased or sold in cash in that case the cash memo is prepared by the seller of goods.

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