Applying Vendor Credit

Vendor credits can be applied directly while making a bill payment. This is useful when a vendor has an available credit balance that can be used to reduce or fully offset the amount due on a bill. Applying vendor credits during payment helps ensure that outstanding credits are utilized efficiently and vendor balances remain accurate.

Applying Vendor Credit to a Bill

To apply a vendor credit to a bill, follow the steps below:

1. Open the required Bill and click Options → Pay Bill.

1. On the Bill Payment screen, click on the amount displayed under the Credit column for the bill to which you want to apply the vendor credit.

1. The Add Credit window opens and displays all available vendor credits for the selected vendor under the Vendor Credits tab.

2. If you want to apply a specific credit amount, click the value under the Apply column, enter the amount to apply, and click the Tick icon to confirm.

1. Now, select the required Payment Method and verify the remaining Pay Amount.

1. Click Pay Bill (or Pay Selected Bill(s)) to complete the payment.

1. If the selected payment method is Cheque, enter the cheque number and click Save & Pay Bills.

1. Once the payment is processed successfully, the bill status is updated accordingly, and the applied vendor credit is reflected against the bill.

Refunding a Vendor Credit

If a vendor refund needs to be issued instead of applying the vendor credit to a bill, you can record the refund directly from the Vendor Credit Centre. This is useful when the vendor has refunded the amount through a payment method such as a credit card, cash, or bank transfer.

To record a vendor refund, follow the steps below:

1. Navigate to Menu → Purchase → Vendor Credit → Vendor Credit Centre and select the required vendor credit record.

2. Right-click the vendor credit and select Refund Balance.

1. The Vendor Refund window opens with the vendor credit details automatically populated.

1. Select the appropriate Refund Via payment method (for example, Credit Card) and complete the required refund details.

2. Click Record Refund to post the vendor refund.

1. Once the refund is recorded successfully, the refunded amount is deducted from the vendor credit balance, and the vendor credit status changes to refunded in the Vendor Credit Centre.