Apply vendor credit
A vendor credit is a negative bill indicating that a vendor owes you money. Efficiently applying vendor credit is crucial for accurate financial management. In Tipalti, you can apply the credit to future invoices, reducing your outstanding liability by creating a bill with a negative amount. This ensures vendor credits are applied accurately against outstanding payments, maintaining precise financial records, and facilitating smoother payment operations.
To create a negative bill for vendor credit:
Log in to the Tipalti Hub and click Bills in the left menu.
If you need to add the bill, click + Add bill and add a bill with or without uploading an invoice. The bill must be a non-PO-backed bill.
In Bill summary, select the vendor from the Payee dropdown.
Enter a negative net amount that reflects the vendor credit available.
Fill in the required fields.
Click Submit to submit the bill for approval. Once approved, the bill moves to Pending payment.
Once the negative bill is approved, it’s moved to the Pending payment tab. You can select it with other bills for the same payee and submit them for payment. The negative bill is applied as vendor credit, reducing the total amount owed.
To apply vendor credit to a bill payment:
In Pending payment, select the negative bill and its related positive bills that apply to the same payee.
Click Pay bills.
Click Submit to submit the bill for payment.
The vendor credit is applied to the final payment.
The Payment by vendor credit tab shows how much vendor credit is being applied to the bill payment, reducing the total outstanding amount.
You can apply the vendor credit to the payee’s bills until the credit reaches 0.