Overview
What is a vendor credit? A vendor credit is a financial transaction that reduces the amount of money owed to a vendor for a future bill. For example, if you paid $400 for landscaping, but it ended up costing only $350, you would receive a $50 vendor credit from the vendor.
You can then apply the vendor credit to an outstanding bill from the same vendor by selecting the Pay bills option and the Vendor Credit you entered will be automatically applied to an outstanding vendor bill.
Note: Creating Vendor Bills is not available to Starter Plans. Consider upgrading to the Pro or Premium Plans to access this feature.
The Steps
Add a Vendor Credit
To add a vendor credit, click the + Create New button at the top left corner. Then click Add Credit under the Vendor Transactions section.
On the New Vendor Credit window, you'll need to fill these in:
Vendor - Select the vendor who gave the credit
Property - The property that is associated to the credit and bill
Category - Enter the account the credit is being applied to, most likely a expense account
Description - Optional
Amount - Enter the amount of the credit
You can also click Add Line Item if there's more than one credit as well as adding a memo for more notes. Lastly if you need to, you can upload any files associated with this vendor credit.
Click Save to finish.
Apply a Vendor Credit to an Outstanding Bill
Vendor credits are applied automatically when paying bills. You must remember, however, that vendor credits will only be applied to bills that are for the correct vendor and property that the original Vendor Credit was made for.
To apply a Vendor Credit, click the + Create New button at the top left corner. Then click Pay Bills under the Vendor Transactions section.
From the Pay Bills wizard, go through it as normal and the vendor credits will automatically be applied. However, if you want to make sure that vendor credits are being applied, toggle off "Automatically Apply Payments" on the property that that has vendor credits and click Edit.
A Bills Due window will appear and you'll see any open bills for that property and vendor along with the vendor credit.
Click Save and then just go through the rest of the Pay Bills wizard and you're done.
Note: If you don't see the vendor credit, you'll need to check if you entered the correct property for the bill. So, if the bill is for 123 Smith St., for instance, the Vendor Credit also needs to be made out for that property.
If you're receiving a refund from a vendor instead, read the article: Record a Refund to a Credit Card or Bank Account.