> For the complete documentation index, see [llms.txt](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/accounts-payable/vendors/vendor-credits.md).
# Vendor Credits
Vendor Credits let you record credits issued by vendors, such as rebates or pricing adjustments, and apply them to one or multiple bills, fully or partially, whenever needed.
### Create a Vendor Credit
Follow these steps to create a vendor credit:
1. Go to **Accounts Payable**.
2. Start the creation from one of the following locations:
* **From Vendor Credits (Recommended)**
* Select **Vendor Credits.**
* Click **+ Add Vendor Credit** in the top-right corner.
* **From a Vendor Record**
* Select **Vendors.**
* Choose a vendor.
* Go to the **Transactions** tab.
* Click the **three-dot menu (⋮)** and select **+ Add Vendor Credit**.
3. Enter the required details:
* Vendor.
* Subsidiary.
* Credit #.
* Credit date.
* GL impact date (optional)*.*
* Currency.
4. Add the credit amount and assign it to an account in the line details section.
5. **(Optional):** Attach supporting documents.
6. Click **Save**.
### Apply a Vendor Credit
Complete these steps to apply a Vendor Credit to one or more bills:
1. Open the **Vendor Credit**.
2. Click **Apply to bills**.
3. Select one or more bills.
4. Enter the amount to apply.
5. Click **Apply**.
You can fully or partially apply a credit, including across multiple bills, but never more than the total credit amount.
### Manage Applied Credits
Manage how an applied Vendor Credit is used:
* Unapply a credit from a bill.
* Modify the applied amount.
* Apply remaining amounts to other bills.
All changes are tracked in the activity or history log.
### Vendor Credit Statuses
Vendor Credits can have the following statuses:
| Status | Description |
| --------------------- | ---------------------------------------------------- |
| **Unapplied** | The credit has not been applied to any bill. |
| **Partially Applied** | The credit has been partially used. |
| **Fully Applied** | The full amount has been applied. |
| **Refunded** | The credit has been matched to a refund transaction. |
### Review GL Impact
The accounting impact of a Vendor Credit occurs when the credit is created.
| Event | Impact |
| ------------------------ | ------------------------------------------ |
| Credit created | A journal entry is created. |
| Credit applied to a bill | No additional journal entries are created. |
This keeps accounting clean and avoids duplicate entries.
### Find Where Vendor Credits Appear
Vendor Credits are reflected across the system:
* The Vendor Credits list, where all created credits are tracked.
* Vendor transaction lists, alongside bills and payments for that vendor.
* AP aging reports, reflecting any impact on outstanding balances.
They automatically update as credits are applied, unapplied, or refunded.
### See Also
To learn more about Accounts Payable workflows in **Rillet**, review these articles:
* [**Add a Bill**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-payable/expense-transactions/add-a-bill.md)
* [**Pay a Bill**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-payable/expense-transactions/pay-a-bill.md)
* [**Create a Bill Credit from a Vendor Bill**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-payable/expense-transactions/create-a-bill-credit-from-a-vendor-bill.md)
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