# Apply, refund or void a vendor credit

Use what is left on a vendor credit against an open bill, record the vendor's refund, or void the credit.

Canonical: https://demo.qixcount.com/help/bills-and-vendors/apply-refund-or-void-a-vendor-credit

Who can do this: Owners, or people with *View bills* and *Create bills*; refunds need *Create payments to vendors*

Where: Expenses & bills, then Vendor credits

You'll need: A saved vendor credit with an amount not yet used; an open approved bill from the same vendor to apply it to

## Apply credit to an open bill

1. Open **Expenses & bills**, then **Vendor credits**.
2. Open a vendor credit with an amount in **Not yet used**.
3. In **Apply to a bill**, choose the **Bill**.
4. Check the **Amount** and **Date**.
5. Select **Apply credit**.

Applying posts nothing, because the vendor credit already debited Accounts Payable. The bill's balance due goes down and the bill shows as Partial, or Paid when nothing is left to pay.

Only that vendor's approved bills that are Pending, Partial or Overdue with a balance are listed. The amount can't be more than what is left on the credit or the bill's balance. The date can't be before the vendor credit or the bill. In Nonprofit, a vendor credit applies only to the bill it came from.

You can also start from the bill. When the bill is open and the vendor has credit not yet used, the bill shows a **Vendor credits** card with **Apply credit**. It uses the oldest open vendor credit and today's date, or the credit's date if that is later.

In General, you can also use a vendor's open credit while paying: on [Pay bills](https://demo.qixcount.com/help/bills-and-vendors/bulk-payments), select **Use credit** in the bill's row. The oldest open credit is used first. Voiding that payment makes the credit available again.

To take a credit back off a bill, select **Remove** beside it under **Applied to bills**. The amount returns to the vendor credit and the bill's balance goes back up. Nothing posts.

A bill can't be voided while any vendor credit is applied to it. It also can't be voided while a vendor credit recorded from it is still active, even if that credit is unused. Its **Void Bill** option stays hidden until you remove the applied credit and void the vendor credit recorded from the bill, as described below.

## Record a refund from the vendor

> [!WARNING]
> Recording a refund posts a journal that adds the money to the account you choose. Check that the money has arrived first.

1. Open the vendor credit.
2. Select **Record a refund from the vendor**.
3. Enter the **Date** and choose the account in **Deposited to**.
4. Check the **Amount**.
5. Enter a check number in **Check or reference** if you have one.
6. Select **Record refund**.

The refund debits the bank or cash account and credits Accounts Payable. You can record up to what is left on the credit, dated on or after it. Refunds need *Create payments to vendors*.

When the deposit shows up on your bank feed, link the bank line to the refund rather than categorizing the line, which would post the refund a second time. QixCount never links a refund on its own. You confirm it in one of two places:

- In **Bank transactions**, QixCount proposes the refund's entry as a pair when the deposit is exactly the refund's amount, went into the account the refund was recorded in and is dated within three days of the refund. Select **Confirm pair with your entry** on the line. Nothing new posts.
- In a reconciliation, select the link icon in the bank row's **Match** column to open [**Suggested Matches**](https://demo.qixcount.com/help/banking/match-a-transaction#accept-a-suggested-match). A deposit of exactly the refund's amount, in the account the refund went into, lists it as *Refund from vendor credit* with the vendor credit number. Select **Accept**.

A refund is matched to one whole bank line. It can't be matched for part of a line or together with other records. Voiding a matched refund releases the match, and the bank line comes back for review.

A refund lowers that vendor's automatic 1099 total for the year of its date, and shows in the form's payment list as a refund. A voided refund stops counting. This guide explains how QixCount works. It isn't tax, legal or accounting advice.

To undo a refund, select **Void** beside it, enter **Why** and select **Void refund**. This reverses the refund's journal and needs *Delete payments made*.

## Void a vendor credit

> [!WARNING]
> Voiding reverses the vendor credit's journal on today's date. You can't restore a voided vendor credit.

1. Remove each application and void each refund on the vendor credit.
2. Select **Void this vendor credit**.
3. Enter **Why**.
4. Select **Void vendor credit**.

Voiding needs *Void bills*. The option appears only when nothing is applied or refunded; until then, a note in its place says what to remove or void first. A closed or locked period can block the reversal.

Correct the vendor credit or refund on this page. Its journal cannot be reversed separately in Journal entries.

## Vendor credit statuses

| Status | Meaning |
| --- | --- |
| Open | Some of the credit is not yet used. |
| Used | The whole credit has been applied or refunded. |
| Void | The vendor credit was voided and its journal reversed. |

[Accounts payable aging](https://demo.qixcount.com/help/reports/ap-aging) subtracts applied credit from each bill. When **Show** is **All Outstanding** and you haven't selected a bucket, it also notes the credit not yet applied below its table.