Create & allocate vendor credits
A vendor credit is money a supplier owes you back — for returned goods, a price dispute, a rebate, an overpayment. The credits list (Orders → Vendor Credits) tracks each credit's total, what's been allocated, and what's still available, with tiles for Open Credits, Unapplied Credits, and Total Allocated.
Three ways to create one
Click Create Vendor Credit and choose what the credit is for:
- Return goods to vendor — creates a Vendor Return, the physical return document. The credit is created from it when the supplier's credit memo arrives — the return's lines carry straight onto the credit.
- Adjust, rebate, or refund — any non-stock credit, with no stock movement: price disputes, freight errors, volume rebates, MDF, overpayments. Pick the supplier and add credit lines on the detail page (custom lines or lines pulled from a PO).
- Scan credit memo — upload the supplier's credit memo PDF and AI extraction drafts the credit for review.
You can also Import credits from a spreadsheet, or Export the list.
The credit page
A credit like VC-00001 opens with its Credit status (Draft → Authorized) and Payment status (Unapplied → Applied), plus tabs for Lines, Return Shipments, Allocations, Payments, Accounting, Movements, Documents, Tags, Notes, and Activity. Build the lines (Add From PO / Add Custom Line), then Authorize.
Allocate it
An authorized credit's balance nets against what you owe the supplier — allocate it from the credit's Allocations tab, or watch it appear as available credit on the supplier's Payables and in the purchase invoice payment flow. The supplier statement nets credits & deposits available against the total open.
Next steps
- Return goods to a vendor — the physical half.
- Vendor credits from a PO — the PO-side recording flow.
Video transcript
A vendor credit is money the supplier owes you back. Create one from a goods return, as an adjustment or rebate, or by scanning the credit memo. Each credit tracks its own status and payment status, with the lines behind it. Authorize the credit, and its balance nets against what you owe the supplier.