A cash memo is a document used to record cash transactions between a buyer and a seller. It serves as a proof of purchase for both parties and helps in tracking the accounting of receipts and payments. Some key points about cash memos are:
- A cash memo is generated by the seller for cash sales.
- It is a non-negotiable commercial document that confirms the purchase.
- The seller creates the cash memo and hands it over to the buyer as a record of the transaction.
- Cash memos are used to track accounting for both business-to-business and business-to-customer transactions.
