How Do You Handle Vendor Credits and Purchase Returns in Zoho Books?
Vendor Credits allow you to account for returns or overpayments made to your vendors and apply those credits to future bills.
Create a Vendor Credit:
Go to Purchases → Vendor Credits → + New.
Add the vendor, items returned, and value.
Apply to Bills:
Open a bill for that vendor → Click Apply Credit → Choose the vendor credit to offset amount.
Track Remaining Credits:
View unused credits under Purchases → Vendor Credits dashboard.
Reports:
Use Vendor Credit Notes report to view aging, balances, and usage.
Why This Workflow Matters:
Tracking vendor credits prevents financial misstatements, reduces duplicate payments, and simplifies vendor account reconciliation.
Related Articles
How can Zoho digitize procurement and purchase request workflows?
Procurement digitization using Zoho eliminates email chains and approval confusion: Zoho Creator App: Design a purchase request form, set multi-level approval logic, and auto-generate PO numbers. Zoho Books / Zoho Inventory: Use the Purchase Order ...How Do You File GST Returns and Generate GSTR Reports in Zoho Books (India)?
Zoho Books is fully GST-compliant and enables easy generation of GSTR-1, GSTR-3B, and other returns, ready for filing on the GST portal. Enable GST: Settings → Taxes → Enable GST → Add GSTIN and state for your business. Map HSN/SAC Codes: For each ...How can Zoho Finance automate the procurement and vendor payment lifecycle?
MSPs can use Zoho Books to streamline procurement and vendor payments from purchase requests to final disbursement, ensuring compliance with procurement policies and maintaining vendor relationships. Key steps in the cycle: Purchase Requisition and ...How Do You Record Expenses and Track Vendor Bills in Zoho Books?
Zoho Books helps you manage day-to-day spending by recording expenses, categorizing them, attaching receipts, and keeping track of due bills. Add an Expense: Go to Purchases → Expenses → + New. Enter vendor, amount, expense category, and attach a ...How do approval workflows function in Zoho Books for expense and purchase approvals?
Zoho Books includes built-in approval workflows to streamline financial oversight. Here’s how it works: Purchase Orders / Expenses / Bills Modules: Enable “Transaction Approval” in module preferences. Set Approvers by Role or User: You can define ...