How to Add a Vendor Credit (credit an owner)

Do you need to record a credit from a vendor or give a credit to an owner from the property management company? This article will show you how.

Vendor credits allow a Portfolio/Property/Unit to receive a credit from a vendor. The vendor can be the Property Management company or any of the vendors that you work with. The idea is that the Portfolio Property/Unit already paid a bill to the vendor in the past. Then the vendor may realize that they were overpaid or they just want to give a credit back to the Portfolio/Property/Unit. If that is the case, a Vendor Credit can be created.

That credit can then be used to fully or partially pay for any other unpaid bills due to that vendor from the Portfolio/Property/Unit. The credit cannot be used to give the Portfolio/Property/Unit a cash refund. It can only be used to pay for any other unpaid bills due to that vendor from the Portfolio/Property/Unit. The vendor credit acts as a refund in the sense that it reduces the amount owed by the Portfolio/Property/Unit to the vendor, but it cannot be received as cash. It can only be used to pay other bills owed to the same vendor

• From the navigation menu click on Accounting and then select Money Out.
• Click on the green Actions button and select Add Credit from the dropdown.
  
  
  
• Enter the details below on the Add Credit form
  • Credit From - Who is the credit from.
  • Date Posted - Enter the appropriate date.
  • Credit to Portfolio/Property/Unit - Who is receiving the credit.  You can choose the portfolio, property or unit.
  • Account - Select the appropriate Chart of Account. 
  • Amount - Enter the amount to credit.
  • Description - Enter text describing the reason for the credit.
  • Click on Add Credit button if you want to enter an additional credit from the same vendor.
  • Click Save
    
    Example of an owner credit from a vendor for a painting job, note that a Painting Chart of Account was selected.
    
    
    
    Example of an owner credit from the management company for management fees, note that the Management Fee Chart of Account was selected.