Difference Between Invoice And Cash Memo(With Table)

A cash memo and an invoice are two different forms that a business might use in order to receive money from a customer. When you’re trying to choose between them, it’s important to know the difference between the two so that you can choose the one that is most appropriate for your situation. So, in order to understand the difference between these two terminologies, we have to go through the following topics of the blog;

What Is Invoice?

An invoice is a formal document that is issued by a seller to a buyer, typically in exchange for goods or services. An invoice serves as a record of a transaction and helps ensure that both parties have an accurate record of the goods or services sold, including the price and the terms of payment. 

Invoices are typically generated electronically using software designed for this purpose. This method is ideal because it allows you to automatically generate invoices at any time, even in your absence if necessary. The software can also be used to generate statements on demand at any time. Once printed, an invoice is often mailed directly to your customers. However, many businesses prefer to send their invoices electronically via email or other digital means. In either case, it’s important to save each invoice so that you. 

An invoice typically includes the following information:

  • The name and contact information of the seller
  • The name and contact information of the buyer
  • A description of the goods or services sold
  • The number of goods or services sold
  • The price of the goods or services sold
  • The date of the sale
  • The terms of payment
  • A total amount owed by the buyer- Any taxes payable by the buyer

What Is Cash Memo?

A cash memo is a type of invoice that is usually issued by businesses to their customers for purchases made in cash. It typically contains the same information as an invoice, such as the date of purchase, the items purchased, and the total amount due. However, a cash memo also typically includes the words “paid in full” or “paid in cash” to indicate that payment was received. 

In a nutshell, a cash memo is a document that businesses use to record sales made on a cash basis. A cash memo typically includes the following information:

  • The name and contact information of the business
  • The date of the sale
  • A list of the goods or services sold
  • The prices of the goods or services sold
  • The total amount due
  • The amount of cash received

Invoice Vs Cash Memo(Comparison Table)

Basis For DifferenceInvoiceCash Memo
DefinitionIt refers to a commercial document that is generally issued by the supplier or seller to the buyer to make a request for payment for goods or services supplied. It refers to a type of invoice that is usually issued by the sellers to the purchasers for purchases made in cash.
Released at the time ofCredit SalesCash Sales
Proof/Evidence Of Payment duePayment received 


  • Both of them are the non-negotiable commercial tools
  • They are issued by the seller/supplier
  • Both are sent out to the buyer/receiver of goods and services  

Key Differences Between Invoice And Cash Memo

Invoices and cash memos are both legal documents that are used to record financial transactions. However, there are some key differences between the two that you should be aware of.

  • An invoice is typically used when selling goods or services on credit, while a cash memo is generally used for transactions that are paid for in cash.
  • Another difference is that invoices usually have more detailed information than cash memos. For example, an invoice may include the buyer and seller’s contact information, a description of the goods or services sold, the quantity, the unit price, the total amount due, and the terms of payment. A cash memo, on the other hand, typically just lists the items purchased and the total amount paid.
  • While an Invoice is issued for the credit score transaction as evidence of the amount due, a cash memo, on the other hand, is released for cash transactions as evidence of the quantity received. 
  • Finally, invoices are typically issued after the transaction has taken place, while cash memos are usually given at the time of sale.


In conclusion, the main difference between an invoice and a cash memo is that an invoice is used for billing purposes while a cash memo is used for recording sales. Both documents are important for businesses, but they serve different purposes. Be sure to use the correct document for your needs to avoid any confusion or mix-ups.

Basir Saboor

Basir Saboor is a dedicated writer with over 7 years of expertise in researching and disseminating information on technology, business, law, and politics. His passion lies in exploring the dynamic landscape of technology, tracking the latest trends, and delving into the intricacies of the ever-evolving business world. As a firm believer in the influential power of words, he crafts content that aims to inspire, inform, and influence.

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