Vendor credits

A credit from a supplier — apply it to an open bill or take the refund.

Purchases → Vendor credits.

The mirror image of Credit memos and refunds. Raise one when you return goods, when a supplier overcharged, or when they issue a rebate.

Then either:

• Apply it to one or more open bills from that vendor, reducing what you pay.
• Take a refund — the vendor pays you, which posts to your bank account.
• Leave it open, where it shows against the vendor and reduces your net payable.

If the credit is for returned inventory, the lines put the stock back and reverse the cost, so your valuation stays right.