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AccountingBuyVendor Credit

Vendor Credits

Sometimes, things don’t go exactly to plan. Maybe a shipment arrived damaged, or perhaps you were overcharged on an invoice. A Vendor Credit (often called a Debit Note) allows you to record the amount a supplier owes you.

You can treat this credit like a “wallet” with that vendor—use it to pay off future bills or record a cash refund if they send the money back.

Creating a Vendor Credit

To start the return process, navigate to Accounting > Vendor Credits and click New.

Vendor Details

Start by choosing the Vendor issuing the credit.

  • Vendor Credit Date: Enter the date the credit was issued. Like other modules, this supports the local Nepali date format (e.g., 2082-09-11).
  • Debit Note#: The system automatically assigns a sequential ID (e.g., DN-3-82/83), ensuring your accounting records remain gapless.
  • Reference#: Use this to track the vendor’s internal credit number or the original PO number for easy cross-referencing.

Item Details

List the items you are returning or being credited for:

  1. Item: Select the product (e.g., “Summer Sweatshirt”).
  2. Quantity & Rate: Define how many units are being credited and at what price.
  3. Tax: Ensure the tax rule matches the original bill to keep your VAT returns accurate.

Terms & Notes

Add any specific Terms and Conditions or internal Notes regarding why this credit was raised (e.g., “Returned due to color mismatch”).

Save

Review the Total amount and click Save.

Managing Your Credits

Once saved, the Vendor Credit acts as a financial asset. The status bar at the top lets you know exactly where this money sits.

Understanding the Status

  • Draft: You are still working on the details.
  • Open: The credit is confirmed and available to be used.
  • Applied: You have successfully used this credit to pay off a bill (Highlighted in Green).
  • Refunded: The vendor has sent you cash/bank transfer for this amount.
  • Void: The credit note has been cancelled.

How to Use the Credit (Sidebar Actions)

The sidebar on the right is where you put this credit to work. You generally have two options:

Option 1: Apply to a Bill

If you owe this vendor money for other items, you can use this credit to reduce your debt.

  • Look for the Credit Apply section in the sidebar.
  • The system will show linked bills (e.g., BI-1-82/83) and the amount applied to them (e.g., Rs 5,125.00).

Option 2: Receive a Refund

If the vendor sends you money back directly (instead of store credit):

  • Use the Credit Refund section in the sidebar.
  • Click to Refund Remaining Credits to any Account. This will prompt you to select the bank or cash account where the money was deposited.

Pro Tip: Always double-check your Debit Note# against your physical tax records to ensure compliance with local tax regulations.

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