> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pluvel.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Vendor Credits
> Record credits from vendors and apply them to future bills.
Sometimes vendors owe you money. They overcharged you, you returned something, or they're giving you a credit for a future purchase. Vendor credits track what vendors owe you and let you apply it to bills.
## Common Scenarios
**Returned merchandise** — You bought inventory, returned some, vendor issued a credit instead of a refund.
**Billing error** — Vendor billed you $1,000 but it should have been $800. They issue a \$200 credit.
**Volume discount** — Vendor gives you a rebate at year-end based on how much you purchased.
**Prepayment** — You prepaid a vendor who went out of business before delivering. You recovered some funds.
## Creating a Vendor Credit
Go to **Finance → Bills → Vendor Credits** and click **New Credit**.
Enter:
* **Vendor** — Who gave you the credit
* **Date** — When you received it
* **Amount** — How much the credit is for
* **Reference number** — Vendor's credit memo number
* **Line items** (optional) — What the credit is for
If the credit relates to a specific bill, link it.
## Applying Credits to Bills
You have an open bill from a vendor and a credit from the same vendor? Apply it.
1. Open the bill
2. Click **Apply Credit**
3. Select the vendor credit
4. Choose how much to apply (all or partial)
The bill's remaining balance decreases. If the credit covers the whole bill, mark it as paid.
You can also apply a credit when recording a payment:
* Bill: \$1,000
* Vendor credit: \$200
* Cash payment: \$800
Total applied: \$1,000 (credit + cash). Bill paid in full.
## Applying to Future Bills
Don't have a current bill to apply the credit to? Leave it open. It stays on the vendor's account.
When the next bill from that vendor comes in, Pluvel reminds you: "This vendor has a \$200 credit available."
## Requesting Refunds
If you want cash instead of a future credit:
1. Open the vendor credit
2. Click **Request Refund**
3. Record when the refund arrives (check, transfer, etc.)
This moves the credit from "Available" to "Refunded" and records the cash coming in.
## Vendor Credit Statuses
| Status | Meaning |
| ----------------- | ---------------------------- |
| Open | Available to apply or refund |
| Partially Applied | Some used, some remaining |
| Applied | Fully used against bills |
| Refunded | Converted to cash |
## Viewing Credits by Vendor
Go to a vendor's profile to see:
* All credits issued by this vendor
* Applied vs. remaining balances
* History of how credits were used
Useful when a vendor asks "You have \$500 in credits with us" and you want to verify.
## Reporting
**Vendor Credit Report** — All credits, their status, and balances.
**AP Aging** — Vendor credits reduce what you effectively owe. If you owe Vendor A $5,000 and have $1,000 in credits, your net AP is \$4,000.
**Cash Flow** — Open vendor credits are effectively money you're owed (or will save on future purchases).
## Tips
**Record credits promptly.** If a vendor tells you they're issuing a credit, record it. Don't wait for the formal credit memo — you can update the reference number later.
**Match to original bills.** Link credits to the bills they relate to. This helps with reconciliation and makes your accountant happy.
**Don't let credits expire.** Some vendor credits have expiration dates. Apply them before they lapse.
**Watch for patterns.** Getting a lot of credits from one vendor? Might indicate quality issues, billing problems, or a relationship that needs attention.
Vendor credits affect your expenses. If you recorded a $1,000 expense and later get a $200 credit, your net expense is \$800. Make sure credits hit the right period for accurate reporting.
Pay bills and apply credits in one step.
See a vendor's full history including credits.