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

To transfer a vendor balance in Zoho ERP, you must first create a liability account in the Chart of Accounts to record the balance transfer. Next, record a payment against the original vendor’s bill using this transfer account so that the payable is cleared. After that, create a credit note for the new vendor and apply the same transfer account to it, effectively moving the balance from one vendor to another.

To create a chart of account:

• Go to Accounting on the left sidebar.
• Click Chart of Accounts in the Modules bar at the top.
• Click + New Account in the top right corner.
• Select Other Current Liability as the Account Type.
• Enter Vendor Balance Transfer as the Account Name.
• Enter the Account Code and provide 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.
• Click Bills in the Modules bar at the top and select Bills from the dropdown.
• Select the bill you want to write off and click Record Payment.
• Click Payment Mode and select Configure Payment Mode.
• Click + Add New.
• Go to Purchases on the left sidebar.

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

• Hover over Bills in the Modules bar and select Bills from the dropdown.
• Click the dropdown next to + New in the top right corner and select Create Credit Note.
• Select the vendor for whom you want to create the credit note and fill in the other required details.
• Select Vendor Balance Transfer as the Account.
• Provide Description if required.
• Click Save.