Vendor credit
In accounting, vendor credit means a vendor's reduction of what we owe — a return, an allowance or a price correction — recorded as a negative bill that lowers accounts payable. The vendor calls it a credit memo; the document we send to request one is a debit note.
Also called Debit note.
Authority: ASC 405 (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
Vendor credit, in use
Quoted from the 2 documents that use the word: what it does to an interface, in the spec's own words.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- credit note (that is what we issue to customers)
- refund (cash returned)
- credit memo
Components that render this
These components name it in their spec, grouped and labeled exactly as the catalog shows them.
Components that render the terms it depends on
Few components name this concept outright, but it's built from terms they do name. These render accounts payable, credit, vendor, debit, bill.
2Cards
Family spec6Statements
Family spec9Accounting core (GL)
Family spec- DuplicateBillAlertBlocking. Duplicate payment is one of the most common AP losses.
- CashRequirementsDue in 7/14/30 vs. available, payroll broken out.
- VendorMasterBank details versioned, never overwritten.
- BillFormPer-line coding, required evidence, discount ROI surfaced.
- BillRegisterAging and approval state.
- BillDetailSource document inline beside the coding.
14Tax & compliance
Family specAlso in Payables
Defined in Lexicon. This page is generated from that document, so the two can't disagree.