Vendor Credit Memos
Vendor Credit Memos
A vendor credit memo records a fixed credit your company has received from a vendor -- a price concession, promotional allowance, or general adjustment -- when there is no itemized return of specific goods. Use it when the vendor issues a flat credit rather than crediting individual bill lines. For Returns of specific purchased items, use a Vendor Credit Note instead.
Where to find it
Go to Returns > Purchasing > Credit Memos.
Vendor Credit Memos list, credits received from Vendors against Returns or adjustments.
How to create a Vendor Credit Memo
- Go to Returns > Purchasing > Credit Memos.
- Click New.
- Select the Vendor and set the Posting Date.
- Enter the Amount of the credit.
- Add a Reference Number (the vendor's credit reference, if provided) and Comments if needed.
- Click Post to apply the credit.
Field reference
| Field | Description |
|---|---|
| Code | Auto-generated reference number; read-only |
| Vendor | The vendor issuing the credit; locked after creation |
| Posting Date | Date the credit takes effect in the Accounting period |
| Amount | Flat credit value; editable only while the memo is in Draft |
| Reference Number | Optional -- enter the vendor's credit note or authorization number to match their statement |
| Currency | Read-only; set from the tenant's base currency |
| Comments | Free-text notes visible on the memo and in audit history |
| Balance / Credit | Read-only display of the vendor's current outstanding balance and available credit |
Document lifecycle
| State | What it means |
|---|---|
| Draft | Editable; no financial impact yet |
| Posted | Vendor credit balance increased; Accounting entry created |
| Archived | Closed and read-only |
What happens after posting
The credit sits on the vendor's balance until applied. To use it against an open bill, open the bill and select Pay > Apply Credit. No bank transaction is required.
Tips
- Only Draft credit memos can be deleted. Archive a posted memo when it is no longer active.
- Always enter the vendor's own reference number in Reference Number so you can reconcile the credit against their statement.
- For Returns of physical goods tied to a specific vendor bill, use a Vendor Credit Note -- it carries the bill line references and adjusts Inventory.
Related: Vendor Credit Notes · Vendor Debit Memos · Vendors · Vendor Bills · Audit Trail · Account Priming
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