When you receive a vendor credit, it signifies that you have a balance that can be applied to future invoices or potentially refunded, depending on your arrangement with the vendor. In Docyt, these credits are crucial in maintaining your accounts payable workflow. Here's what you need to know about handling vendor credits in your invoice queue:
Understanding Vendor Credits
Vendor credits are typically issued in the following scenarios:
- You've returned goods to the vendor.
- There's been a pricing dispute that was resolved in your favor.
- You were overcharged in a previous billing cycle.
Deleting Vendor Credits: Yes or No?
In most cases, you should not delete a vendor credit. Docyt's system is designed to apply these credits to future bills, thus reducing the total amount you owe to the vendor. This automated process helps ensure your financial records are accurate and up-to-date.
Exceptions to the Rule
However, there is an exception to this general rule for utility providers such as PG&E or water services. These providers issue regular statements instead of traditional invoices, typically including credits and past-due amounts in future statements. Since the utility provider will automatically apply these credits on the next statement, you can remove these specific credit bills from your Docyt invoice queue.
Steps to Delete a Utility Vendor Credit (When Applicable):
- Log in to your Docyt account.
- Click on 'Expense Management' in the top header menu. From the dropdown, opt for 'Accounts Payable'. Then, tap on 'Invoice Queue' to view all your invoices.
- Locate the credit from the utility vendor. Click on it.
- Confirm that the credit will be accounted for in a future statement from the provider. Click on the three dots (...) ellipses and choose "Delete Invoice".
- Confirm the action by clicking on the red delete button.
Keep These Points in Mind:
- Always double-check with your utility providers to ensure that credits will be applied to your account in future billings before removing any credit notes from Docyt.
- Maintain a record of the credit notice outside of Docyt for your financial tracking purposes.