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Vendor Credits

A vendor credit represents funds a vendor owes you — typically from an overpayment or a credit memo they have issued. Credence tracks vendor credits so you can apply them to future payables or manage cash refunds.

Key Concepts

  • Vendor credit: A credit balance held on behalf of a specific vendor. Created when a vendor owes you money.
  • Remaining balance: The portion of the credit not yet applied to a payable or refunded. Credence tracks this automatically as you apply the credit.
  • Applied credit: A vendor credit that has been assigned to one or more payable charge items, reducing the amount you owe on those items.

How It Works

Creating a Vendor Credit

Vendor credits are created by adding a "negative payable" for the vendor. This records that the vendor owes you money and makes the credit available for future use.

The credit is associated with a specific vendor and, optionally, a property. Credits without a property assignment are available across all properties for that vendor.

Managing Credits

The Manage Vendor Credits page lists all outstanding credits for your selected properties, grouped by vendor.

Credits with a remaining balance greater than zero are shown. Once fully applied, a credit no longer appears in the active list.

Applying a Credit to a Payable

To use a vendor credit against an open payable:

  1. Edit the payable you want to reduce.
  2. Apply the vendor credit the charge item(s) it should offset.

A single credit can be split across multiple charge items or payables until its balance is exhausted.

Refunding a Credit

If you prefer to receive the credit as a cash refund rather than applying it to a payable, Credence can generate a refund payable from the credit. This creates a negative payable for the vendor, which can then be processed through normal payment workflows.

Edge Cases & Notes

  • No property assigned: A credit with no property shows as "No Property Assigned." It can still be applied to any payable for that vendor.
  • Partial application: Applying a credit to a charge item reduces the remaining balance. If the credit exceeds the charge item amount, the remaining balance stays available for future use.
  • Multi-currency: Credits are denominated in the currency of the original transaction. Apply credits only to payables in the same currency.