Intro – Vendor Credit #

Vendor Credit is used to record a credit note issued by a vendor, which reduces the amount your company owes in cases such as overcharges, returned goods, or damaged goods.

• Vendor Credit is a posting transaction.
• Vendor Credit does not update inventory data. If returned goods are inventory items and the inventory need to be update, please use Purchase Return instead.
• Vendor Credit can reference a vendor’s bill. You only need to enter the quantity and cost based on the vendor’s credit note.
• You can create a vendor credit without referencing any bill and manually add the details.
• Refunds feature included.

Create a Vendor Credit #

• Go to Purchase on the left sidebar, and select Vendor Credits
• Click Add New button in the top right corner.
• On the new page, fill in the following fields
  • Credit number is an auto generated number.
  • Vendor: Choose the vendor associated with this credit.
  • Date: default is today.
  • Draft: Select this option to save the credit as a draft.
  • Credit Reason: Choose a reason for this credit from the list. You may add a new reason if needed.
  • Reference: optional
  • Is Refunded: Select this option if you have received a refund from the vendor.

• • Select Bill: A vendor’s credit note should refer to the vendor’s bill. A list of bills will be provided once you select a vendor. The details of the selected bill will be automatically filled in to help you complete the credit note quickly.

• • Expenses tab
    • Enter credit’s details in Expenses tab for expense item
    • Click “Add Line” button to add new detail line or click “Open Dialog” button to add detail line in the dialog.
    • Account: Select expense account to track the expenses.
    • Description. Maximum characters: 4096.
    • Amount: Enter the amount credited.
    • Taxable: This is carried over from the selected bill.
    • Billable: This is carried over from the selected bill.

• • Items tab
    • Enter credit’s details in Items tab for product or service item
    • Click “Add Line” button to add new detail line or click “Open Dialog” button to add detail line in the dialog.
    • Item. Select an item from the dropdown list. If the item is missing or not found, you need to create new item in Items -> Items app.
    • Description. Automatically filled when you select an item. You can edit it as needed. Maximum characters: 4096.
    • Quantity: Enter quantity.
    • Uom: Default unit of measure is Ea (each).
    • Unit Cost: Auto filled when you select an item, or you can enter it manually.
    • Amount: Equal to quantity multiplied by the unit cost. You can edit the amount, and the unit cost will be recalculated.
    • Taxable: This is carried over from the selected bill.
    • Billable: This is carried over from the selected bill.

• • Total: It is a sum of total expense amount and total of items amount.
  • Currency: The transaction’s currency is automatically filled with the value defined in the vendor’s record.
  • Exchange Rate: if foreign currency transaction.

• • Refund tab
    • Undeposited Funds: Cash or check payments can be temporarily held in a separate account before being deposited into the bank at the end of the day or week.
    • Deposit To Account: Select bank account or Undeposited account.
    • Payment Method: Specify how the vendor pays the refunds.
    • Check No: optional.

• • Account tab
    • Purchase Return Account: It is a contra-expense account, meaning it offsets the total purchases made by the company.
    • Payable Account: It is auto filled when the bill is selected.

• • Vendor Address tab
    • All address and contact fields are auto filled when vendor field is selected.

• • Memo tab
    • Memo: Up to 1000 characters.

• Click Save