Vendor Credit Notes
Vendor Credit Notes
A vendor credit note records credit you've earned from a vendor — whether you're returning goods or a vendor issues a price adjustment after the fact. Posting one increases your vendor credit balance in CifraHQ, which you can then apply when paying any future bill from that vendor instead of sending cash.
CifraHQ has two types of vendor credit documents, matched to different situations:
| Type | Use when | Has product lines? |
|---|---|---|
| Vendor Credit Note | Returning specific goods from a vendor bill | Yes — itemized lines from the original bill |
| Vendor Credit Memo | Receiving a flat credit or allowance (no itemized return) | No — enter a single amount |
Vendor Credit Notes list, credits issued by your Vendors.
Vendor Credit Note (itemized)
How to create a Vendor Credit Note
From a Vendor Bill (recommended):
- Open a posted Vendor Bill.
- Click Credit — CifraHQ creates a credit note with all bill lines pre-filled.
- Adjust quantities to match what you are actually returning to the vendor.
- Post the credit note.
Manually:
- Go to Returns > Purchasing > Credit Notes.
- Click the + Data Entry button and select New.
- Select the Vendor and set the Posting Date.
- Add lines manually or click Add Bill Line to pull from an existing vendor bill.
- Post the credit note.
Field reference
- Vendor — locked after creation.
- Base (Bill line) — each line references the original vendor bill line it came from, maintaining a full Audit Trail back to the purchase.
- Quantity / Price — the amount you are returning; you can return less than the full bill line quantity if only some items are being sent back.
Document lifecycle
| State | Meaning |
|---|---|
| Draft | Editable; no financial impact yet |
| Posted | Vendor credit balance increased; Accounting entry created |
| Partially Paid | Credit partially applied to a bill |
| Archived | Closed and read-only |
Vendor Credit Memo (flat amount)
How to create a Vendor Credit Memo
- Go to Returns > Purchasing > Credit Memos.
- Click the + Data Entry button and select New.
- Select the Vendor, set the Posting Date, and enter the credit Amount.
- Post the credit memo — the vendor's credit balance is increased by that amount.
Field reference
- Amount — the flat credit value; editable only before posting. Use this when the vendor sends a credit for a price difference or promotional allowance rather than a physical return.
- Reference Number — optional; enter the vendor's credit reference number if they provided one, so you can match it to their statement.
- Vendor Balance / Credit — shown read-only on the detail page so you can see the vendor's current position before posting.
What happens next (both types)
The credit sits on the vendor's balance in CifraHQ until you use it. To apply it against an open bill:
- Open the Vendor Bill.
- Click Pay → Apply Credit — CifraHQ creates a credit payment using the available credit balance. No bank transaction is required.
Tips
- You can only generate a Credit Note from a bill when the bill is in Posted, Partially Paid, Paid, or Archived state — draft bills cannot be credited.
- If a bill already has an open (unposted) credit note against it, post or delete that credit note before creating another. CifraHQ enforces one open credit at a time per bill.
- For pack-size Products, enter the returned quantity as number of packs — the same way you entered the original purchase.
Related: Vendor Bills · Bill Payments · Vendors · Vendor Credit Memos · Audit Trail · Account Priming
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