In the event that an outside vendor issues your firm a credit for future invoices, that credit can be applied to our Vendor Bills
module as a Vendor Credit Memo.
To record a Vendor Credit Memo:
- Click on the Accounting icon to access the Accounting module. Select the Vendor & Bills tab, then click + on the action bar. Select New Vendor Credit from the drop-down menu.
- The New Vendor Credit modal displays.
- Complete all the required fields indicated with a purple bar.
- Optionally enter any relevant Notes in the field provided.
- Click CREATE.
When the Vendor Credit is created, an entry on the General Ledger is automatically created debiting the Vendor Bill Credit account, and crediting the selected account. These entries will show on an accrual basis only, not on cash.
When you receive your next bill from the vendor, you can then apply the credit to that balance::
- Click + on the action bar again and select Pay Vendor Bill from the drop-down menu.
- The Pay Vendor Bill modal displays. Enter or select a Vendor from the drop-down list, which will then display your available credit as well as any open invoices.
- Enter the amount you want applied to the invoice if you only want to use part of the credit in the Credit Applied field. If there is a remaining balance, it would then be paid as usual with an operating account or a credit card.
- Click Pay & Close or Pay & Print.