Use vendor credit when a supplier reduces a bill or owes you credit.
1. Create the credit
Open the original bill and choose Create Vendor Credit, or open Purchases → Vendor Credits. Check the vendor, currency, date, and credited items.
The vendor credit editor shows the vendor, items, and available actions.
2. Choose how to use it
Save the credit. To reduce an eligible unpaid bill in the same business, for that vendor and currency, with matching accounting treatment, choose Apply to Bill and enter no more than the unused credit or bill balance.
3. Record a cash return separately
If the supplier actually returned money, choose Refund for the unused credit instead. Enter the date, account, and amount. Check the remaining credit; do not both apply and refund the same amount.