An accounting entry that gives rise to no debit and credit effects and is made for the sole purpose of clarifying and explaining specific transactions or events. Memo entries (also,  memorandum entries) facilitate the recording of transactions that an entity expects to take place at a certain date in the future.

For example, in the case of a government grant, an entity makes a journal entry to record the entire amount of the grant extended at the time that it is served with a notice to that effect. A memorandum entry facilitates early recording and control of such a transaction. The memorandum entry that will be made is as follows:
Debit- grant awarded CU xxxx
Credit- unbilled grants CU xxxx

A memorandum entry will be followed by additional entries at the time the entity submits grant reimbursement requests to the granting agency and upon the actual receipt of the grant amount.