How to Manage Vendor Credits in CrmLeaf

Overview

A vendor credit is a credit note held against a vendor. It records value the vendor owes back to you, for example after an overpayment or a returned consignment, and it is applied back to that vendor's paid bills.

Vendor credits arise in two ways: automatically, when a vendor payment exceeds the bills it is allocated to, and manually, when you raise a credit against the vendor yourself.

How It Works

A credit is created for the vendor, then applied to paid bills for that vendor so the credit is consumed against real documents rather than sitting as an unexplained balance.

Overpayment or manual entry → Vendor credit created → Apply to paid bill → Credit consumed

• Overpaying a vendor payment creates a vendor credit automatically for the excess amount.
• You can also raise a vendor credit manually against a vendor.
• A credit is applied back to paid bills for that vendor.
• A goods return against a bill or purchase order is the usual commercial reason for a manual credit, because the vendor owes value back for material you sent back.

Who Can Use This Feature?

User

• Review the vendor credits raised for a vendor, including credits created automatically from overpayments.
• Raise a vendor credit manually.
• Apply a credit to the vendor's paid bills.

Access depends on the modules and role assigned by your Administrator.

Prerequisites

• The Purchase module is enabled for your account.
• The vendor exists in Vendor.
• For an automatic credit, a vendor payment has been recorded that exceeds its allocation.
• For applying a credit, a paid bill exists for that vendor.

For Users

Step 1: Open the vendor credits list

Go to: Operations → Vendor Credits

Review the credits already held for the vendor. Credits created automatically from overpayments appear here without you adding them.

Step 2: Raise a credit manually where needed

Select Add, choose the vendor, and enter the credit amount and date with a description of why the credit exists, such as a returned consignment. Select Save.

Step 3: Apply the credit to a paid bill

Open the credit and apply it to the vendor's paid bills. Apply credits before making the next payment to the vendor, so you do not pay value the vendor already owes you.

Step 4: Verify the vendor position

Check the credits list and the vendor's bills to confirm the credit has been consumed and the remaining balance is what you expect.

Expected Result

Important Notes

• Menu names and their position can differ between product editions and can be customised for your account, so your sidebar may not match these paths exactly. Use Search or your Quick Access items if you cannot find a screen.
• Vendor credits belong to the Purchase add-on module. Confirm it is included in your plan.
• Do not raise a manual credit for an overpayment. The overpayment already created one automatically, and a second credit would double the value.
• Record why each manual credit exists. A credit with no stated reason is difficult to reconcile with the vendor later.

Common Scenarios

Troubleshooting

Frequently Asked Questions

Is a vendor credit the same as a credit note to a client?

No. A vendor credit is held against a vendor in the Purchase module. Client credit notes are separate documents in invoicing.

Can I apply a credit to an unpaid bill?

Vendor credits are applied back to paid bills.

Does completing a goods return create a credit automatically?

Automatic credits are documented for overpayment. Confirm the settlement behaviour of a completed goods return with your Administrator.

Related Articles

• How to Pay Vendors and Allocate Payments to Bills
• How to Create a Bill from a Delivered Purchase Order
• How to Raise and Process a Goods Return
• How to Create and Apply Credit Notes