Vendor Surplus(Credit Memo) Vs. Vendor Refund

This article will cover when to do a Vendor Surplus (Credit Memo) and when to do a Vendor Refund.

Vendor Refund

Scenario:

You have a bill for $1200.00

You have already paid the bill for $1200.00

The Vendor then refunds you $100.00

You would then do a Vendor Refund.

In essence, if the vendor gave you money back (e.g., cash, check), it would be considered a refund.

Use the following link for more information on Vendor Refunds:https://help.cenpoint.com/docs/vendor-refunds?highlight=refund

Surplus/Credit Memo

Scenario:

You have a bill for $1,200.00

Your bill for $1200.00 is not yet paid

You call and say the freight was damaged, and the vendor gives you a credit against the bill.

You would enter a Vendor Surplus/Credit Memo (you can also use a previously entered credit memo against a bill)

Use the Surplus/Credit Memo and apply $100.00 to the bill

Then Pay the remaining $1,100.00

Essentially, if the vendor provided you with "Store Credit," you should enter a credit memo.

Use the following link for more information on Vendor Credit Memo/Surplus:https://help.cenpoint.com/docs/vendor-supluscredit-memo?highlight=credit%20memo