Credit Entries (Vendor Credits)

A credit entry represents a credit from a vendor — for returned goods, billing corrections, or refunds. Credit entries are managed under Credit entries and can be applied to one or more open vendor bills.

Navigate via Spend management → Credit entries.

# Credit Entry States

A credit moves from Posted → Partially cleared → Cleared as it's applied to bills.

# Creating a Credit Entry

1. Click + Create credit entry
2. Fill in the header:
   • Vendor
   • Entity
   • Date
   • Currency
   • Amount
3. Add line items (each with a description, amount, GL account, cost center, tax code)
4. Save — the credit opens in Draft

# Posting (Publishing) a Credit

From the credit detail header, click Publish to post the credit. If a credit note approval workflow is published (Settings → Workflows), publishing submits the credit for approval instead, and it's posted once approved. Once posted, it becomes available to apply against open bills.

# Applying a Credit to a Bill

1. Open a Posted credit entry
2. Click Apply to bill
3. The dialog lists open bills for the same vendor and entity in the same currency
4. Pick the target bill and enter the application amount
5. Confirm

The dialog tracks:

• Remaining balance on the credit (credit amount minus already linked bills)
• Total invoice amount of each candidate bill

You can apply a credit across multiple bills in succession; each application reduces the remaining balance. When the credit is fully consumed, its state moves to Cleared.

To remove an application, click Unlink next to the linked bill in the credit's detail view.

# Other Actions

From the credit detail header:

• Archive — archive the credit (available in Draft and Posted; a Posted credit with linked bills must be unlinked first)
• Mark as paid — record a vendor refund of the credit as a bank payment; pick the payment date, bank account, and amount

# Related Articles

• Entering bills
• Scheduling payments