A vendor credit in Zoho Inventory is a document representing money owed to you by a vendor, usually resulting from a purchase return, pricing dispute, or overpayment. It reduces the amount you owe the vendor on future purchases.
Once a vendor credit exists, you can apply it to any open vendor bill from the same vendor, reducing the payable balance. If the credit exceeds your current payables, you can request a refund or carry the balance forward.
Monitor outstanding vendor credits to ensure you capture the benefit. Unclaimed vendor credits represent real money left on the table. Regular reconciliation of vendor statements in Zoho Inventory helps identify credits that have not yet been applied.
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