1. Meaning ↓
A cash memo is a document stating cash received for the goods sold. It is a paid bill for cash sales.
An invoice is a document showing the amount due from the buyer or the debtor it is a bill for credit sale.
2. When Issued?
Cash memo is issued in the case of a cash transaction.
Invoice is issued in the case of a credit transaction.
3. Proof ↓
Cash memo serves as an evidence of cash being paid by the buyer to the seller.
Invoice serves as an evidence of the indebtedness of the buyer to the seller.
4. Creditor Debtor Relationship ↓
Cash memo does not create creditor debtor relationship between the seller and the buyer.
Invoice creates creditor debtor relationship between the seller and the buyer.
5. Accounting Entry ↓
Cash memo is entered in the cash book of the seller.
Invoice is the basis for making entries in sales book and purchase book.
6. Revenue Stamp ↓
In case of Cash memo, one revenue stamp is to be affixed if the cash receipt exceeds Rs.500/- (In India).
In case of an Invoice, there is no need to affix a revenue stamp.