Overview - Vendor Credits

Vendor Credits are credits that you receive from your vendor as an equivalent of the amount that they owe you. With vendor credits, you can track this amount until it is paid by the vendor, refunded, or applied to other bills of the vendor.

Basically, the vendor issues you credits via a credit note, and you can record this as a vendor credit in Zoho Expense.

When to record a vendor credit in Zoho Expense

Let’s say that you make an advance payment to your vendor, and the final bill amount turns out to be lesser than the amount you had paid. The vendor can keep the remaining amount, and can issue you equivalent credits in your name for the same. So, you can create a vendor credit for the same, and apply it on future bills from the same vendor. When you apply it to the vendor’s next bill, the bill amount is reduced accordingly.

Consider another scenario where your vendor has sent you ten boxes of phones you had ordered, but two of those boxes contain damaged phones. You inform him of this, and he issues a credit note towards the value of those two boxes. So, you can create a vendor credit for the value of those two boxes, and apply it on the vendor’s future bills

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