# Record a vendor credit

Record a credit a vendor gave you, from a bill or on its own, and see what saving posts to Accounts Payable.

Canonical: https://demo.qixcount.com/help/bills-and-vendors/record-a-vendor-credit

Who can do this: Owners, or people with *View bills* and *Create bills*

Where: Expenses & bills, then Vendor credits

You'll need: An approved bill to credit, or in General a vendor; amounts in your business currency

## Record a credit from a bill

Use this when a vendor gives you credit for returned goods, a price change or a billing mistake.

> [!WARNING]
> Saving posts to your books right away. There is no draft. To undo a vendor credit, void it.

1. Open **Expenses & bills**, then **Bills**.
2. Open the approved bill.
3. Select **Record vendor credit**.
4. Enter the **Date**, and the vendor's own number in **Vendor’s credit number** if they gave one.
5. Review the lines. Each starts with what is left to credit on that bill line. Set a line to 0 to leave it out.
6. Enter any tax the vendor credited in **Tax on the credit**.
7. Select **Save vendor credit**.

The vendor credit opens. If the bill is still open (Pending, Partial or Overdue), the credit is applied to it, up to its balance due. Anything left stays on the vendor credit to [apply to another bill or record as a refund](https://demo.qixcount.com/help/bills-and-vendors/apply-refund-or-void-a-vendor-credit).

**Record vendor credit** appears on approved bills that aren't void.

## Record a credit without a bill

This is available in General only.

1. Open **Expenses & bills**, then **Vendor credits**.
2. Select **New vendor credit**.
3. Search for the **Vendor** and select it, then enter the **Date** and any **Vendor’s credit number**. People with *Create vendors* can select **New vendor** to add one in a panel on this page.
4. For each line, enter a **Description**, choose an **Account** and enter an **Amount**.
5. Select **Save vendor credit**.

Lines can use an active expense account, or an asset account a purchase could go to, such as prepaid expenses or equipment. Bank, cash and receivable accounts aren't offered, because a credit there would move money or receivables without a document behind it. The credit stays open until you apply it to a bill or record the vendor's refund.

In Nonprofit, a vendor credit must come from the bill it corrects, uses only that bill's lines and keeps each line's fund coding. It applies only to that bill.

## What saving posts

The journal is dated on the vendor credit's date. It debits Accounts Payable, credits each line's account and credits Sales Tax Expense with any **Tax on the credit**. For a 150.00 credit on office supplies with 12.00 tax, with example account names:

| Account | Debit | Credit |
| --- | --- | --- |
| Accounts Payable | 162.00 | |
| Office supplies | | 150.00 |
| Sales Tax Expense | | 12.00 |

A vendor credit uses your business currency only. A closed or locked period blocks its date.

The **Vendor credits** list shows the total **Not yet used**, with a status filter and a search by number, the vendor's reference or vendor. Statuses are Open, Used and Void, as on the [credit's page](https://demo.qixcount.com/help/bills-and-vendors/apply-refund-or-void-a-vendor-credit#vendor-credit-statuses).

## Add a vendor from the credit

People with *Create vendors* can add a vendor without leaving the vendor credit. Nothing you entered is lost.

1. Select **New vendor** beside **Vendor**, or type a name in **Vendor** and select the option to add it.
2. Check **Display name**. Add **Email**, **Phone**, **Payment terms** and **Default account** if you know them.
3. Turn on **Track this vendor for 1099** for a contractor. Tracking needs their tax ID. It is under **More details**, with the legal name and address.
4. Select the save button at the foot of the panel.

The vendor is chosen on the credit, and its default account fills lines that have no account yet. A credit started from a bill keeps that bill's vendor, so the panel isn't offered there.

If the panel says **You may already have this vendor**, select the button that uses that vendor instead of saving a second one. An inactive vendor, or one waiting for approval, can't be used. A tax ID that another vendor already has stops the save until you use that vendor, or select **Save as a separate vendor** and enter a reason. When new vendors need approval, the vendor is saved but can't be chosen until it is approved. **Open the full page** opens the New vendor page in a new tab.

Next, [apply, refund or void a vendor credit](https://demo.qixcount.com/help/bills-and-vendors/apply-refund-or-void-a-vendor-credit).