Vendor Credits and Credit Notes in Finofo

How It Works

A negative invoice posts to your ERP as a vendor credit (credit memo) against an accounts payable account. An account coded on the invoice is used first; the defaults in Settings > Integrations > Options cover invoices without one.

Find a Vendor's Credits

1. Open Vendors and select the vendor.

2. Open the Credit tab. Credit notes are listed here; with none, it shows No credit yet and the Add credit button.

Set Up How Credits Post

1. Open Settings > Integrations.

2. Under Options, set the default accounts payable accounts for vendor credits.

3. Add a separate vendor credit currency only if your ERP holds a separate accounts payable account for each currency.

4. On Payment entries, restrict the GL accounts that can be selected for Vendor Credit if needed.

Check the Vendor Balance

• Account balance / Our books: What is open on your ledger for this vendor.
• In transit: Paid, but not yet seen by the vendor.
• Vendor should show: The balance the vendor's statement should show.

Tips

• Set the default vendor credit AP accounts before the first credit note arrives.
• Reconcile vendor statements against the Ledger tab monthly to catch credits you have not recorded.

Frequently Asked Questions

How does a credit note reach the ERP?

Processed as a negative invoice, it posts as a vendor credit (credit memo) against an accounts payable account.

Which AP account does a vendor credit use?

An account coded on the invoice first; otherwise the default in Settings > Integrations > Options.

Can I use a credit to pay a vendor?

Yes. In a payment batch, vendor credit is one of the payment methods that can be chosen for the vendor, alongside bank details and card.