What is a Vendor Credit?

Occasionally Goods Purchased from a Vendor need to be returned (wrong item, faulty product, etc.) and so a Vendor Credit needs to be created. This Credit can then be applied to future Bills from that Vendor or it can be refunded.

Here are the Vendor Credit statuses:

Open: These are Vendor Credits that are neither applied nor refunded.
Partially Applied: These Vendor Credits have some amount applied to a Bill and may have some refunded.
Partially Refunded: These Vendor Credits have some amount refunded and none applied to a bill.
Applied: These Vendor Credits have been fully applied to a Bill.
Refunded: These Vendor Credits have been fully refunded.

The Vendor Credit Module

Vendor Credit Header

Select Store: Select the store from where you want to return the item from.
Select Vendor: Select the vendor. Click for more details on the selected vendor.
Select Account: Select the accounts payable.
Ref No: Enter a reference number if required, this is typically the vendor’s credit number.
Date: The date of the vendor credit.
Total Credit: The total credit amount of the vendor credit.
Credit Used: The amount of credit used from the total credit.
Project/Class: Select a project or class to associate this vendor credit with.

Vendor Credit Details – Items

Item Type: Choose the item type of the item that you are adding.
Item Number: Choose the item number of the item that you are adding.
Qty: Enter the quantity of the item that you are adding.
Tax: Select the tax code of the item you are adding.
Rate: Enter the Rate of the item you are adding.
Project/Class: Select a project or class to associate this item line with..

The descriptions below refer to the column headings of the items:

Item#: The item number.
Item Type: The item’s type.
Description: An item’s description.
Unit Cost: An item’s unit price that can be edited by clicking on it.
Qty: An item’s quantity that can be edited by clicking on it.
UOM: The unit of measure (UOM) of the item.
Tax: The item’s tax code.
Amount: Unit Cost * Qty

Vendor Credit Details – Expense

Account: Select an account for adding an expense line.
Tax: Select a tax code for adding an expense line.
Amount: Enter an amount here for adding an expense line.
Project/Class: Select a project or class to associate this expense line with.
Memo: Enter a memo here if required for adding an expense line.
Add: Click this button to add the expense line.
Memo: A memo for the vendor credit can be written here.
Exchange Rate: If the credit is for a foreign vendor, the exchange rate can be edited here.