What it is:
A vendor credit is issued when a supplier refunds or gives you credit — for example, if goods are returned or overcharged.

What it’s for:

• Reduces the balance you owe to a vendor
• Lets you apply the credit to future bills or purchases
• Keeps supplier accounts accurate

How to use:

1. Go to Purchase > Vendor Credits.
2. Click Add Credit Note.
3. Select the vendor and enter credit details (amount, reference, reason).
4. Apply the credit to reduce upcoming bills.