Vendor Credit

To enter a vendor credit, create a new vendor bill by going to Expenses -> Vendor Bills -> New Vendor Bill. Set a negative amount as the invoice total (in the amount of the credit). When you receive a future bill for a positive amount, you can apply the credit invoice to help pay for that.

For example:

1. Receive a credit notice of $20 from your vendor.

2. Enter a New Vendor Bill with $-20.00 as the total.

3. Receive a new invoice #1234 in the amount of $200.

4. Create a New Vendor Bill for the $200 invoice.

5. If the Admin -> Payables -> General Setup -> Approve Bills -> Bills Must Be Approved Before Payment setting is on, go to Expenses -> Checks -> Write Checks -> Approve Bills and approve the negative and positive amounts. After that go to Expenses -> Checks -> Write Checks -> Write Checks For Approved and select the bills to be paid including the vendor credit.

6. If the Bills Must Be Approved Before Payment setting is off, then go to Expenses -> Checks -> Write Checks and select the vendor credit and regular bill to pay.

7. When you print the check, the amount will be $180. The vendor credit will show in the stub details of the check as having been applied towards the $200 vendor invoice.