Debit memo
A document that increases what a customer owes after the original invoice, for example to correct an undercharge or add a fee.
A debit memo adjusts an invoice upward without reissuing it. It's used for underbilled quantities, freight or late fees, and to rebill a deduction that turned out to be invalid.
It's the counterpart to a credit memo. Both should reference the original invoice so the customer's AP team can match them.
Related terms
- Credit memoA document that reduces what a customer owes, issued for returns, pricing errors, agreed concessions or approved deductions.
- Invalid deductionA deduction the customer isn't entitled to under the agreement, such as a duplicate claim, an expired discount or a penalty for something that didn't happen.
- InvoiceA document a seller issues to request payment, listing what was delivered, the amount owed, the payment terms and the due date.