Thursday, October 8, 2009

Debit Memorandum Definition

What is a Debit Memorandum?

A debit memorandum is usually a:

  • A document given by the bank to a depositor that notifies them that the depositor's balance is being decreased due to some event other than the payment of depositor originated check, e.g. bank service charges or overdraft fee; or
  • A document used by a seller to notify a buyer that the seller is debiting the amount of the buyer's accounts payable due to errors or other factors requiring adjustments that the buyer was not aware of before.
The debit memorandum serves an informative purpose and hopes to correct all parts of the accounting information cycle. 

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The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.