Credit Memo
Definition
A document issued to reduce the amount a customer owes, used for returns, overcharges, agreed discounts or service failures. It can offset a future invoice or support a refund, and in VAT and GST systems it also adjusts the tax reported.
Related Terms in Invoicing & Sales
Remittance Advice
A note sent by a payer listing exactly which invoices a payment covers. Without it, part-payments and bulk transfers have to be allocated by guesswork, which is a common source of reconciliation delay.
Statement of Account
A periodic summary sent to a customer showing opening balance, invoices raised, payments and credits applied, and the closing balance owed. Unlike an invoice it is not a demand for a specific sum but a reconciliation tool.
Invoice
A document sent to a customer requesting payment for goods or services. Includes seller and buyer details, items, amounts, taxes, and payment terms. HelloBooks supports AI-powered smart invoicing with multi-channel delivery.
Proforma Invoice
A preliminary invoice sent before delivery as an estimate or quotation. Not a demand for payment — used for customs, advance payments, and price confirmation. Can be converted to a tax invoice in HelloBooks.
Stop memorising terms — let HelloBooks do the work
AI-assisted bookkeeping that handles invoicing, GST, reconciliations, and reports automatically. Free to start.