Entering Vendor Credits

A vendor credit is a transaction to show credit from a vendor that you can apply to your payables account. Vendors might credit your account if you return merchandise to them or negotiate a discount after receiving an invoice.

You can apply vendor credits to vendor bills when you make payments and the credit decreases the payable amount due to the vendor.

Tip:

You can delete vendor credits, if required. On the vendor record, click Edit. Click the Financials subtab, and then locate vendor credit you want to delete. Click Delete, and then confirm the deletion in the prompt.

You may need to enter a transaction to show credit from a vendor to apply toward your payables account. For example, you have returned merchandise to a supplier or received a discount after receiving the invoice. You can enter a vendor credit for all or part of the amount of the invoice.

You can enter a vendor credit as a way to record a deposit paid on a purchase order (PO).

There are three ways to create a vendor credit:

You can create a credit manually that is not necessarily associated with an existing bill. This could be useful to record credit or a discount negotiated from your vendor either after receiving a bill or independent of any bills.

See Entering a Vendor Credit Manually.
You can create a credit directly from an original vendor bill.

This is useful to record credit for some or all items on an existing bill and automatically associates the credit with the original bill.

See Creating a Vendor Credit Directly From a Vendor Bill.
You can create a vendor credit directly from a vendor return. Then, the items and amounts automatically completes the credit form and the credit is associated with the return.

See Creating a Vendor Credit Directly From a Vendor Return.

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