Create a Bill Credit from a Vendor Bill

You can create a bill credit directly from a vendor bill when a vendor issues a refund or adjustment for a previously recorded expense.

Creating the credit from the bill keeps the transaction linked to the original bill and updates the bill status automatically.

Create a Bill Credit

Follow these steps to create a bill credit from a vendor bill.

1. Go to Accounts Payable > Bills.

   
2. Locate the bill you want to credit and click it to open the bill record.

   
3. In the upper-right corner of the page, click the three-dot menu (⋯).

4. Select Bill Credit.

   
5. Review the bill details. The following fields are pre-filled based on the original bill:

   • Vendor

   • Bill #

   • Select the Date. The credit date must be on or after the original bill date.

   • In the Amount fields, enter the credit amount for each line item. If the bill contains multiple line items, adjust the credit amount for the relevant lines.

     Note You can modify the amounts per line item as long as the total credit does not exceed the amount due on the bill.

6. Click Save.

   

After saving, the system creates the bill credit and links it to the original vendor bill.

Review the Updated Bill

After saving the bill credit, the bill record updates automatically.

The bill status changes to Credited, indicating that the bill has been fully offset by the credit created from it.

Inside the bill record, you can also see the credit in the Related section. This section displays the Bill Credit transaction associated with the bill, including the credited amount and the date the credit was created.

If you return to the Bills list in Accounts Payable, the bill will no longer appear as Unpaid and will instead display the Credited status.

Review the Audit History

You can review the activity history of the bill to see when the bill and the credit were created or modified.

To view the audit history:

1. Go to Accounts Payable > Bills.

   
2. Locate the bill and click the three-dot menu (⋯).

3. Select Audit History.

   

The Audit History window displays a chronological list of actions performed on the record, including:

• Bill creation

• Bill updates

• Bill credit creation

• The user who performed each action

• The date and time of the change

  

This helps maintain a clear audit trail for financial records.

You can also select GL Impact from the same menu to review how the bill and the credit affected the general ledger.

See Also

Review the following articles for additional guidance:

• Add a Bill

• Pay a Bill

• Classify and Sync a Bill

• Create a Bill with FX