Purchase credits and returning items to a vendor

A purchase credit is a document issued by a vendor to indicate you are being given a refund or that you have credit which can be applied to future orders. They are usually given in relation to specific invoices issued by the vendor previously.

When a purchase credit is marked as "credited", it will reduce the account balance of your vendor.

Purchase credits can either take the form of an order, similar to a purchase order, listing items and their individual prices, or it can be an accounting transaction only, entered as a "vendor credit".

Returning items to a supplier consists of two parts:

  1. Create a purchase credit to record the financial details.
  2. Make stock corrections for items shipped back to supplier.

Purchase credits are essentially the same as a purchase order but will apply a negative amount to the balance you owe to your supplier. The main difference from purchase orders is that you cannot allocate or ship inventory items against the purchase credit.

Since stock items cannot be allocated or shipped with the purchase credits, you will need to do a manual stock correction from the inventory detail report to indicate which items are being sent back.


Please note the video was created before it was possible to add inventory items to a purchase credit.

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