# Create a Vendor Credit

Raise it against the original bill so the lines, prices and tax rates come with it.

A standalone credit is possible and should be rare, because nothing in it says what it corrected.

![The New Vendor Credit screen, where the vendor, the credit number, the date and the vendor's own reference are entered above the lines being credited.](https://www.sorviai.com/help/vendor-credits/new-vendor-credit-form.png)

*The reference is what ties a credit back to the bill or return that caused it.*

## Record a credit

- **Raise it against the original bill**

  This copies the lines and keeps the credit tied to what it corrects.
- **Trim to what is being credited**

  Reduce quantities or remove lines so it covers only the disputed part.
- **Enter their credit note number**

  As with bills, their reference is the one you will quote when querying it.
- **Check the tax**

  Purchase tax is credited in proportion, which matters for your tax return.
- **Save**

  The credit becomes available to apply against bills.

> **Note:**
>
> **Date it when they issued it**
>
> The credit reverses cost in the period it is dated. A credit for a March overcharge recorded in June moves cost between two months, which is correct and worth knowing before you explain a variance.

## Common reasons

| Reason | Also needs |
| --- | --- |
| Overcharged on price | Nothing. Value only. |
| Short delivery already billed | Nothing, if the receive was recorded correctly. |
| Goods returned | A stock adjustment or transfer out in Inventory. |
| Damaged on arrival | A decision on the damaged stock you are holding. |
| Agreed rebate or discount | Nothing. Often a standalone credit. |