Vendor credits
Record credits from vendors for returns, rebates, or billing errors and apply them to open bills or record a vendor refund.
- Plans
- Core and above
- Availability
- Available
- For
- Bookkeepers
- In KontoCore
Purchases → Vendor credits
What this does
A vendor credit reduces what you owe. Apply it when paying bills, or record a refund deposit if the vendor pays you back. Job-coded credits reduce job actual cost.
How to
Record and apply
- 1Open Purchases → Vendor credits → New.
- 2Choose vendor, lines, accounts (and job/cost code if applicable).
- 3Post, then apply it in Pay bills, or choose Record refund.
Statuses and lifecycle
| Status | Meaning |
|---|---|
| Open | Available to apply. |
| Applied | Used against bills. |
| Refunded | Vendor paid it back. |
Corrections, voids, and reversals
- Void the credit to reverse it; unapply first if used.
Permissions
- Owners, administrators, and users with bookkeeping permission can create and post. View-only users can read but not change records.
What happens in your books
Payable down, expense (or inventory/job cost) down.
| Account | Debit | Credit |
|---|---|---|
| Accounts payable | 150.00 | |
| Materials expense | 150.00 |
Common mistakes
- Recording a vendor refund as income instead of applying it to the credit.
Troubleshooting
Credit not offered in Pay bills
It belongs to a different vendor record or is in a different currency.
Terms used:Vendor credit
Related articles
Vendor refundsRecord money a vendor pays back from unused vendor credit, an overpayment, or another refundable balance, into the bank or cash account you choose — never as revenue.Paying vendor billsSelect open vendor bills, apply vendor credits, choose how and when to pay, and record full or partial payments that clear accounts payable.Vendors, bills, and bill paymentsAdd vendors, enter bills with due dates, pay them, and apply vendor credits.Correcting job costs and keeping source provenanceFix a vendor bill or expense posted to the wrong job, phase, cost code, or cost type without losing the trail back to the original source document.
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Last reviewed October 6, 2026