A cash memo is a document a seller issues to record a cash sale and acknowledge payment. Customers may pay by cash, debit card, or credit card. While electronic payments generate transaction records, cash payments also need to be documented. A cash memo gives the seller and buyer a written record of the purchase and the amount received.
A cash memo worksheet provides a consistent format for preparing receipts and recording cash sales. Keeping these records up to date helps a business review transactions and reconcile the cash received.
A completed cash memo can support a payment record if questions arise later. Reviewing cash memos can also help a business analyze cash sales, although other payment records are needed to understand total sales.
Cash Memo Worksheet
Create an itemized cash memo with two copies per A4 sheet.
Business & Customer
Items Sold
Expand a product to edit its quantity, rate, and discount.
Payment & Terms
Review & Export
Both receipt copies update together. Print uses a separate, unscaled A4 document.
Best Practices for Creating a Cash Memo Worksheet
The following tips can help you create a clear and professional cash memo:
Choose Suitable Software
Spreadsheet applications such as Microsoft Excel can be used to create a reusable cash memo template. They allow you to organize transaction details and use formulas to calculate totals.
Include Seller and Buyer Details
Include the business name, address, and contact information so the seller can be identified. Add the buyer’s name or contact details where required or useful for the transaction.
Record the Transaction Details
Give each cash memo a reference number and date. List the items or services purchased, quantities, unit prices, and line totals. Show any discount, applicable tax, and the total amount paid.
Clearly identify cash as the payment method. Where relevant, record the amount tendered and any change returned.
State Relevant Terms and Conditions
Include any applicable return, exchange, or refund terms in clear language. For example, if a receipt is needed to request a return, explain that requirement. Terms may appear on the memo or be provided separately.
Uses of a Cash Memo
Keeping a Record of Cash Sales
Cash memos help a business track individual cash sales and calculate the total cash received during a particular period. These figures can be compared with cash on hand and other sales records.
Acknowledging Payment
A cash memo records the payment date, amount, and items purchased. It gives the customer a reference for questions about the purchase or for a return or exchange, subject to the business’s terms.
Using a Template
A reusable template makes it easier to prepare consistent cash memos without creating each one from scratch. Complete and review the details for every transaction, and keep copies according to the business’s record-keeping procedures.
Worksheet File: 21 KB
