---
title: "Vendor credit"
description: "Vendor credit — 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."
canonical: "https://lopifi.com/glossary/vendor-credit"
---

# Vendor credit

> Vendor credit — 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.

Source: https://lopifi.com/glossary/vendor-credit
Part of: Lopifi — Planned: US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

---

**What is 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 known as

- Debit note

## Words this system refuses for it

- credit note (that is what we issue to customers)
- refund (cash returned)
- credit memo

- **Category:** Payables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/lexicon)
- **Rendered by:** [three-way-match](https://lopifi.com/md/components/three-way-match)
- **Related:** accounts-payable, credit, vendor, debit, bill