A debit memo or debit memorandum is a document that records and notifies a customer of a debit adjustment made to their individual bank account. It is a notice from a financial institution or a business to a customer that there is a forthcoming adjustment (a debit) to their account. A debit memo is issued to inform customers about a decrease in the balance of their account that needs correction. It is used for adjustments beyond normal debits, such as bank fees, incorrectly prepared invoices where the amount owed should be greater, and rectifying accidental positive balances in an account. Debit memos are not issued for normal debit transactions on an account, such as cashing a check or using a debit card.

There are different types of debit memos, including bank debit memos, force pay debit memos, and debit memos used to adjust invoices after they’re sent. A bank debit memo refers to a deduction by the bank from the companys bank account, reducing the bank account balance similar to a check drawn on the bank account. A force pay debit memo is a debit memorandum that requires customers to pay and ensure that the debit memo goes through before any goods or services are released. Debit memos can also be used to help rectify inaccurate account balances.

In summary, a debit memo correction is a notification to a customer that a debit adjustment has been made to their account, reducing the money available, and it is used for adjustments beyond normal debits.