Memo Invoice

A memo invoice, also known as a memorandum invoice or simply a memo, is a document issued by a seller to provide a record of the sale of goods or services to a buyer. Unlike a regular invoice, a memo invoice is typically used for internal purposes, such as accounting or tracking purposes, rather than for requesting payment from the buyer.


Memo invoices are often used in situations where a full invoice is not necessary, but there is still a need to record the details of the transaction. This may include cases where the buyer is an internal department or subsidiary of the seller, or where the transaction is of a smaller value and does not require a formal invoice.

A memo invoice typically includes essential information such as the seller’s name and contact details, the buyer’s name, a description of the goods or services sold, the quantity, unit price, and the total amount. However, unlike a regular invoice, it may not include terms of payment, payment instructions, or a request for payment.


Memo invoices offer several advantages for both sellers and buyers. For sellers, using memo invoices can help streamline internal processes by providing a standardized format for recording sales transactions. It allows them to keep track of sales volumes, analyze product or service popularity, and maintain accurate inventory records.

For buyers, memo invoices provide a convenient way to track purchases and expenses internally. Rather than receiving multiple invoices for small purchases, they can consolidate them into memo invoices, reducing the administrative burden associated with processing and payment.


Memo invoices find applications in various sectors and industries, particularly in the internal operations of large organizations. Some common scenarios where memo invoices are used include:

  1. Interdepartmental Transactions: Within a company, different departments may engage in transactions with each other. In such cases, memo invoices serve as an internal record of the goods or services exchanged.
  2. Subsidiary Transactions: In cases where the buyer and seller are affiliated companies or subsidiaries, memo invoices are often used to track intercompany transactions for accounting and reporting purposes.
  3. Small Purchases: When organizations make small purchases that do not require a formal invoice, memo invoices offer a simple way to record these transactions without the need for lengthy documentation.


Memo invoices are a valuable tool for internal record-keeping and tracking sales within organizations. They provide a streamlined and efficient alternative to regular invoices for situations where a formal invoice is not necessary or practical. By utilizing memo invoices, companies can improve their internal processes, maintain accurate sales records, and simplify the administrative tasks associated with small or internal transactions in the information technology sector. Overall, memo invoices contribute to the smooth functioning of business operations in the ever-evolving landscape of the IT industry.

This glossary is made for freelancers and owners of small businesses. If you are looking for exact definitions you can find them in accounting textbooks.

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