## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/ca/books/kb/llms.txt

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# How do I transfer vendor balance from one vendor to another?

Before you record the balance transfer, you must create an account for it. To create an account:

*   Go to _Accountant_ on the left sidebar and select **Chart of Accounts**.
*   Click **\+ New Account** in the top right corner of the page.
*   Select **Other Current Liability** as the _Account Type_ from the _Account Type_ dropdown.
*   Enter the _Account Name_ as **Vendor Balance Transfer**.
*   Enter the _Account Code_ and write a short description for the account, if required.
*   Click **Save**.

Next, you have to record payment for the vendor’s bill as you are not liable to pay the vendor. To record payment:

*   Go to _Purchases_ on the left sidebar and click **Bills**.
*   Select the vendor’s bill for whom you want to record payment.
*   Click **Record Payment**.
*   Enter the necessary details.
*   Click the _Payment Mode_ dropdown and select **Configure Payment Mode**.
*   Click _\+ Add New_ and enter mode as **Adjustment Mode**.
*   Select the account as **Vendor Balance Transfer** in the _Paid Through_ field .
*   Click **Save**.

To track this payable amount against another vendor, you can raise a Credit Note. Here’s how:

*   Go to _Purchases_ on the left sidebar and select **Bills**.
*   From _\+ New_ dropdown, click **Create Credit Note**.
*   Select the vendor for whom you want to create the credit note and fill in the required details.
*   Select the Account as the **Vendor Balance Transfer**. Provide description if required.
*   Click **Save**.

Now, you can track the bill until it is paid off.

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