Vendor Credit – Introduction:

The Vendor credit transaction is a credit that you receive from the vendor against the return of the product. In Mocha Accounting vendor credit can be applied against the other bill payable against the same vendor.

Let’s understand with an example:

You purchased ten boxes of phones from the vendor. Two of those boxes contain damaged phones, and you returned them to the vendor. Your vendor raised a credit note in lieu of the returned products. You can record the vendor credit for the value of those two boxes and apply it on the vendor’s future or other bills.