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.
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