Cash Memo Templates for MS Word & Excel

Companies as well as small business owners follow a set of guidelines pertaining to customer care, customer dealing, making sales, and stocking warehouse. These guidelines cover almost every aspect of a business and facilitate businessmen as much as possible. These guidelines are pre-decided while laying the foundation of a business and help during times of crisis as well as success.

A cash memo is also referred to as a cash receipt…

Businesses are responsible for providing a receipt of sales to the customer and keeps a copy for themselves. These cash receipts are known as cash memos and are issued by traders in exchange for cash purchases. In contrast, the document provided as a receipt for a credit purchase is known as a credit memo. Cash memos act as proof of sales and can be used to claim an issue for the sales conducted.

Defining a cash memo sheet…

A cash memo sheet is a document that records all the cash sales or cash memos made in a specific period i.e., a day or week or a month. It provides a clear image of all the cash sales conducted in a definite period. This sheet may also be referred to as the receipt that is handed over to the buyer in exchange for making a cash sale.

What contents are added to a cash memo…

Contents of a cash memo depend on the policy followed by the seller as it is the responsibility of the seller to provide the buyer with the memo sheet. In general, a cash memo sheet has the following information printed on it,

Name of supplier
Address
Contact details
Name of buyer
Address
Date
Number of cash memo
List of items purchased
Quantity of each item
The unit price of each item
Total price
Discount applied
Tax applied
Terms and conditions
Grand total amount

These contents may vary from one business to another, but it generally includes above mentioned information.

Sample of a cash memo…

Cash memo sheets have simple designs because they are used to serve the purpose of being proof of cash sales. A generally used sample of cash sale memo is given below,

Cash Memo

ABC-Business/shop
Address & Contact

Buyer’s name: ________
Address: ________

Date: __/__/__

Number of Cash Memo(s): ________

Sr. No.	List of items	Unit	Quantity	Rate	Total

Total:________
Discount: ________
Tax: ________
Grand total: ________
Terms and conditions [TEXT]

Significance of using cash memos…

Cash memos are widely used around the globe because they provide security after a cash purchase. Their significance can be evaluated from the following points:

It can be used as proof that a cash sale occurred at the given seller’s location.
The location and contact details of the seller can be used to navigate the place of purchase if necessary.
A claim against any purchased item can be made by using a memo sheet.
A list of all items purchased along with their unit prices helps buyers in knowing what they have purchased and the overall quantity.
It keeps the inventory sorted and helps sellers know which items need a restock.
Cash memos can be kept for future use i.e., comparing prices.
Sellers keep a copy of every cash memo to know the sales they made at the end of every day.

Difference between a cash memo and a bill

A cash memo is a document that is used by vendors to send the price details of the items purchased by the seller. In other words, a cash memo acts as a bill. The only difference between the bill and cash memo is that it only includes the details about the purchases that are made in the form of cash instead of bank transactions.

Benefits of using a cash memo:

A cash memo records the amount of money paid by the purchaser and hence saves both parties from disputes.
It keeps all the records so the vendor or the purchaser does not have to remember each and every detail.
This memo of cash brings both parties on one page.
There are many services that the purchaser may get for the purchased item such as after-sale services, replacement of the purchased item, and a lot more. All these services can only be availed if the purchaser has used the cash memo.

Responsibility of the purchaser

It is the responsibility of the purchaser to ensure that all the service details have been mentioned in the memo by the vendor. If the vendor has not mentioned all the services that he is offering, you can include those services and then sign the memo. The date of the cash transaction, time, and total amount that has been paid is the main details of this memo.

It is important to know the reputation of the vendor before purchasing anything from him. If the seller has not been fair in his dealings with you, you can easily claim anything with the help of a cash memo since the cash memo is proof that you have purchased items from the seller. Usually, those sellers are considered trustworthy and not only sell the items but also send a cash memo with all the essential details.