A vendor credit is a credit note from a supplier — money they owe you back after a return or an overcharge. Apply it against bills or take a refund.
#Creating a vendor credit
Purchases → Vendor Credits → New vendor credit: Vendor *, Credit number, Date *, Reference, Against bill (pick one of the vendor's open bills to pre-fill and link the lines — reduce quantities for a partial return), Items returned to vendor (switch on when stock physically went back, so it leaves inventory at its original cost), Open immediately, lines, adjustment and Note. Click Create vendor credit.
#Statuses and actions
Draft → Open (Remaining shows the unused value) → Closed; Cancelled stays for the audit trail.
Buttons: Apply to bills and Refund (while credit remains), Send Mail, PDF, Edit (draft), Delete (draft), Cancel (open — posts a reversal). ⋯ → Mark as open, Download PDF. Tabs: Overview, Journal Entries, Applied bills, Refunds.
- Apply to bills — enter Amount to apply against each open bill (capped at the bill's due amount and the credit remaining), then Apply credits. Applications can be removed from the Applied bills tab.
- Refund — Date, Amount, Deposit to (the bank account the refund lands in), Reference #, Description, then Save refund.