A memorandum entry (memo entry) is 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. Memorandum entries facilitate the recording of transactions that an entity expects to take place at a certain date in the future.

A memorandum entry provides the so-called memorandum information alongside an entity’s financial statements or general ledger entries as a certain explanation or clarification for specific transactions, particularly those that require specific adjustment to account for unforeseen or unexpected activities or occurrences over the course of a reporting period. Memorandum entries are are not part of the normal entries of an entity.

A memorandum entry is a short note/ presentation entry entered into the general journal and a general ledger account. However, and given its specific nature and limited purpose, it is not a complete journal entry because it does not impact debit and credit side of normal accounts.