# Apply and Refund

Set it against the next bill, or get the money back.

A vendor credit is a balance in your favour and ends one of two ways.

## Apply it to a bill

- **Open the credit**

  Its unapplied balance shows against the supplier's open bills.

  ![A vendor credit record showing its number and status, the supplier, the bill it corrects, the credited lines and the total, alongside an activity panel.](https://www.sorviai.com/help/inventory/vendor-credits/vendor-credit-detail.png)
- **Enter an amount against a bill, and save**

  What you owe on that bill drops, and your next payment is smaller. No money moves.

## Or ask for a refund

- **Record a refund against the credit**

  The amount, the date and the account it is coming into.
- **Save**

  Real money arrives, and the credit's balance falls to match.

**Apply** (the common case)

- Yes: Reduces what you owe
- No: Money moves
- Yes: Needs an open bill

**Refund**

- Yes: Reduces what you owe
- Yes: Money moves
- No: Needs an open bill

> **Tip:**
>
> **Apply if you are still trading with them, refund if you are not**
>
> With an ongoing supplier the credit clears itself against the next order and costs nobody a bank transfer. Insist on a refund when the relationship is ending, because an unapplied credit against a supplier you never order from again is money written off.