Vendor credits are amounts that your vendor owes you, represented as credits. With these credits, you can monitor the outstanding balance until it is settled by the vendor through payment, refund, or application to other vendor bills.
Essentially, the vendor provides you with credits through a credit note, which you can then record as a vendor credit in Cybooks.
When to Record a Vendor Credit in Cybooks
Advance Payment Scenario:
Imagine you make an advance payment to your vendor, but the final bill amount is less than what you paid. The vendor can retain the surplus and issue you credits for the same amount. You can record this as a vendor credit in Cybooks and apply it to future bills from the same vendor. When you apply this credit to the vendor's next bill, the bill amount is reduced accordingly.
Damaged Goods Scenario:
Consider a situation where your vendor sends you ten boxes of phones, but two of those boxes contain damaged phones. After informing the vendor, they issue a credit note for the value of the damaged boxes. You can then record a vendor credit for the value of those two boxes in Cybooks and apply it to the vendor’s future bills.
Creating a Vendor Credit
To create a vendor credit in Cybooks, follow these steps:
1. Navigate to Purchases >Vendor Credits.
2. Click the Add Vendor Credit button in the top right corner of the page.
3. Fill in the required details.
Apply Credits to Bills in Cybooks
Vendor credits can be applied to bills from the same vendor, reducing the bill amount accordingly. To apply credits to bills, follow these steps:
1. Navigate to Purchases > Vendor Credits.
2. Open the vendor credit you wish to apply.
3. Click the Apply to Bills button in the top right corner of the page.
4. A list of bills created for that vendor will be displayed. Enter the amount to apply against the desired bill balances. The amount can be distributed among multiple bills.
5. Click Save.
If all the credits are utilized, the status of the vendor credit note will change to Closed.
