A vendor credit is generally issued when you receive a credit or an advance from a vendor. You must have the manage bills/vendor credits permission in your role to create or delete vendor credits. You must have Pay bills permissions in your role to apply vendor credits.

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Jump to:

• Create a vendor credit
• Delete a vendor credit
• Apply a vendor credit
• Unapply a vendor credit
• Refund a vendor credit
• Things to know

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Create a vendor credit

There are three ways to create a vendor credit:

From an Inbox document

1. Select Inbox in the navigation menu
2. Select the document
3. Select More Actions
4. Select Enter vendor credit
5. Enter details
6. Select Save

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From the vendor details page

1. Select Vendors in the navigation menu
2. Select the vendor's name
3. Select Vendor credits
4. Select Add Credit
5. Enter details
6. Select Save

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From the Bills page

1. Select Bills in the navigation menu
2. Select Vendor Credits
3. Select New
4. Enter details
5. Select Save

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Delete a vendor credit

If you no longer need a vendor credit, you can delete (deactivate) it.

Note: The credit can't be in a closed period, or there won't be a trash can icon to delete the credit.

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Deactivate a Vendor Credit from the bills list

1. Select Bills in the navigation menu
2. Select the Vendor credits tab
3. Select the Ref # of the vendor credit you'd like to delete
4. Select the trash can icon
5. Select OK to confirm

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Deactivate a Vendor Credit from a vendor record

1. Select Vendors in the navigation menu
2. Select the vendor's name
3. Select the Vendor Credits tab
4. Select the Ref # of the vendor credit you'd like to remove
5. Select the trash can icon
6. Select OK to confirm

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Apply a vendor credit

There are 2 ways to apply a credit to a bill; from the Bills tab on the navigation menu, or from the Bill Summary window on the bill itself.

Vendor credits can only be applied by users with roles that have pay bills permissions.

From the Bills tab

1. Select Bills on the navigation menu
2. Select the credits available link under the invoice amount of the bill you'd like to credit
   • Enter the amount of credit you want to apply or
   • Select Customize to edit which vendor credit(s) will be applied, and amount of each to apply
     • If you choose not to customize, the oldest credit is applied first
3. Select Apply

From the Bill itself

1. Select the Invoice number of the bill
2. Select the Credits: < amount > link in the Bill Summary
   • Enter the amount of credit you want to apply or
   • Select Customize to edit which vendor credit(s) will be applied, and amount of each to apply
     • If you choose not to customize, the oldest credit is applied first
3. Select Apply

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Unapply a vendor credit

You can unapply a vendor credit if the bill isn't paid in full, and the credit isn't fully applied yet.

Vendor credits can only be unapplied by users with roles that have Manage vendor credit permissions.

1. Select Bills in the navigation menu
2. Select the All Bills tab
3. Locate the bill the vendor credit is applied to
4. Select the credits applied link under payment amount
5. Edit the amount of credit(s) to apply (change to $0 to remove the credit completely)
6. Select Apply

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Refund a vendor credit

If your vendor sends a refund of a vendor credit, delete the active vendor credit in Bill.com, then manually update your accounting software with the refund information.

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Things to know

• Deleted vendor credits can't be restored to active status
• If a vendor credit has been partially applied, all applied credits will be removed when the vendor credit is deleted
• If the vendor credit pays the bill in full, it'll be marked as Paid and won't appear on the Pay page
• If there's still a balance, it'll appear on the Pay page as Partially Paid
• The Bill will be paid with credits notification will only show if the bill is paid in full with vendor credits applied
• If vendor credits applied partially pays a bill, when the remainder of the bill is paid, the payment notification email to the vendor will list vendor credits and payment applied
• Unapproved, denied, unassigned and approved credits can be applied to bills, the approval status doesn't prevent the application. If you don't want a credit applied, it's best to delete/deactivate the credit
• You can't unapply vendor credits from fully paid bills
  • If you want to remove a credit from a fully paid bill, you'll need to delete/deactivate the vendor credit