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.
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.
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.
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,
These contents may vary from one business to another, but it generally includes above mentioned information.
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: ________
Number of Cash Memo(s): ________
| Sr. No. | List of items | Unit | Quantity | Rate | Total |
Total:________
Discount: ________
Tax: ________
Grand total: ________
Terms and conditions [TEXT]
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:
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.
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.