Record and Apply a Vendor Credit

Use a vendor credit when a payee has given you credit against what you owe them. See Vendor Credits for what they are and when to use one.

Record the credit

1. Open the consultant, vendor or contractor and go to the Credits tab.
2. Click New Vendor Credit.
3. Optionally pick the project it relates to. Leave it blank for a credit that covers the payee as a whole.
4. Choose a reason, and set the credit date. Enter the payee’s credit number from the credit memo they sent.
5. Under Credit Document, upload the credit memo you received (PDF or image). This is optional; you can add it later.
6. Click Add Line and describe what’s being credited, with an amount. Add as many lines as you need; the total is worked out for you.
7. Click Create Vendor Credit. It’s saved as a Draft, and you land on its details page.

You can keep editing a draft with Edit Vendor Credit.

Approve it

When it’s ready, click Approve Credit at the top of the vendor credit. It becomes Open, and its amount shows up in the payee’s Available Credit.

Changed your mind before using it? Rescind takes an unused credit back to Draft, and Void cancels it.

Apply it to a bill

1. On the vendor credit, open the Applied to Bills tab and click Apply to Bill.
2. Pick the bill. Only this payee’s approved bills that still have a balance are listed, each showing how much is due. If the credit is for a project, only that project’s bills are listed.
3. The amount fills in with the most you can apply: whichever is smaller, the credit left or the bill balance. Lower it if you only want to apply part.
4. Check the Applied On date, then click Apply Credit.

The bill’s balance drops by that amount, and the credit’s remaining amount drops with it. To apply the rest of the credit to another bill, repeat these steps.

To undo an application, click the remove icon on its row. The amount goes back onto both the bill and the credit.

Record a refund instead

If the payee pays the money back rather than taking it off a bill:

1. Open the Refunds tab and click Record Refund.
2. The amount fills in with everything that’s left on the credit. Change it if you received less.
3. Choose the payment method, set the Received On date, and add a reference such as the check number.
4. Click Record Refund.

To undo a refund, click the remove icon on its row.

Related pages

• Vendor Credits
• Record a bill and its payments
• Bills