Applying Credits to Bills

When you receive a credit from one of your payees, there are two ways to apply it to bills.

  1. Create a negative bill
    1. Create a negative bill (aka payee credit or credit memo) by entering a negative amount in the "Total" field.
    2. When paying the payee, select both the negative bill and the positive bills for payment 
    3. This combines the bills, which will offset part or all of the amount owed. 
      For detailed instructions, see Pay bills.
  2. Add a negative bill line
    1. When adding bill lines, enter a negative line amount for one of the lines. 
    2. The "Net amount" of the bill is the sum of all bill lines, effectively reducing the total by the negative line amount.

Applying Supplier/payee Credit for Partial Bill Payments

  • Usage of Bill Lines: Use the “negative bill line” method described above if you tend to use bill lines. Enter a negative line to apply the payee credit.
  • Direct Entry: If you don't typically use bill lines, enter the reduced total payable amount (a positive value) in the bill "Total" field.

Paying Remaining Amount Later

If you prefer to pay the remaining amount later:

  1. Create an additional bill by uploading a new invoice or using the action "Create a bill without an invoice.”
  2. Enter the remaining amount in the bill "Total" field.

Applying Supplier/payee Credits to Payments

When a payee credit is selected along with bills for payment:

  • The system applies the oldest payee credit to the oldest bill (for the same payee, payer entity, and currency) first.
  • The due date on the payee credit is ignored.
  • If any credit remains, it proceeds to the next oldest bill, continuing until the credit is used fully.
  • Tipalti then marks the payee credit as "Paid."

If all the credits are used and bills remain in the payment batch, Tipalti creates a single payment order (per payee, payer entity and currency) for the remaining amounts.

Handling Cancellations

If a payment is canceled on the "Payment History" subtab:

  • The applied payee credits are removed from the bills.
  • The balance of the payee credits is updated, allowing you to apply them to other bills.

Viewing Applied Credits

  • On Bills: When viewing a bill, any payee credits applied will be displayed in the related payments table.
  • On Payee Credits: When viewing a payee credit, the bills paid using that credit will be displayed on the "Paid bills" tab.

If you need more details, see our help site documentation on managing bills.