Accounts Payable

Vendor Credits

9min

Invoiced has tracking for vendor credits alongside your bills. This guide details the process for creating, managing, and approving or rejecting vendor credits within the Invoiced platform, ensuring seamless integration into your accounts payable workflow.

Creating Vendor Credits

Step 1: Navigate to the Vendor Credits Section

Log in to your Invoiced account and go to the Vendor Credits section. This area is specifically designed for managing credits issued by your vendors.

Step 2: Add a New Vendor Credit

Click on the Add Credit button to start the process of adding a new vendor credit. You will need to provide various details, including:

  • Vendor Name: Select the vendor issuing the credit from your existing list of vendors. If the vendor is not listed, you may need to add them to your system first.
  • Credit Date: Enter the date the credit was issued.
  • Credit Amount: Specify the amount of the credit issued by the vendor.
  • Description: Add a brief description or reason for the credit.
  • Reference Number: If applicable, enter a reference number associated with the credit for tracking purposes.

Step 3: Attach Supporting Documents (Optional)

Attach any relevant documents or correspondence from the vendor that supports the credit. This could include credit memos, emails, or other documentation.

Step 4: Save the Vendor Credit

After entering all necessary information, click Save to add the vendor credit to your account. The credit will now be available for application to future bills or for reconciliation purposes.

Managing Vendor Credits

Within the Vendor Credits section, you can view and manage all recorded credits. This centralized view allows you to:

  • Review Credit Details: Click on any credit to view its full details, including the vendor, amount, and any attached documentation.
  • Edit Credits: If you need to update any information related to a credit, select the credit and click on the Edit button. Make the necessary changes and save to update the record.
  • Apply Credits to Bills: Credits can be applied to open bills from the respective vendor. This process reduces the payable amount on future invoices, streamlining your payment workflow.

Approving or Rejecting Vendor Credits

Depending on your organization's internal controls, vendor credits may require approval before they can be applied to bills.

Setting Up Approval Workflows

  1. Define Approval Criteria: In the settings, specify the conditions under which vendor credits require approval. Criteria can include credit amounts, vendors, or other relevant factors.
  2. Assign Approvers: Determine who in your organization has the authority to approve or reject vendor credits. Assign these roles within the system.

Approving Credits

  • Approvers will receive notifications when a credit falls within the defined criteria needing approval.
  • Upon review, they can approve the credit, making it available for use against bills.

Rejecting Credits

  • If a credit does not meet your organization's standards or seems erroneous, it can be rejected.
  • Provide a reason for the rejection, which can be communicated back to the vendor for clarification or correction.

Best Practices for Vendor Credit Management

  • Maintain Accurate Records: Keep detailed records of all vendor credits, including dates, amounts, and supporting documentation.
  • Regular Reconciliation: Periodically reconcile vendor credits with your accounts payable to ensure accuracy in your financial reporting.
  • Communicate with Vendors: Clearly communicate with vendors regarding any discrepancies or issues with credits to resolve them promptly.

By following these steps, you can effectively manage vendor credits within Invoiced, ensuring they are accurately recorded, approved, and applied, thereby maintaining the integrity of your financial processes.