Credit Memorandum Law and Legal Definition
A credit memorandum is a commercial document issued by a seller to a buyer. The document confirms that the seller has credited the buyer’s account due to an error, return or allowance. This may also be issued to indicate that the products, quantities and agreed prices for products or services which the seller provided to the buyer was returned or not received by the buyer. Usually, a seller issues a Credit Memo for a lower or same amount than the invoice, and then refunds the money to the buyer or sets it off against a balance due from other transactions.