To get started, you’ll first need to record the vendor credit on account. If you haven’t done this yet, please refer to the article linked below for step-by-step instructions.
Once recorded, the credit will appear in the Payments window under the Accounting tab. You can sort entries by clicking the column headers (Vendor, Pay Date, Invoice Date, etc.) to easily locate the credit.
To apply the credit, you’ll also need the corresponding vendor bill entered into the system. If you need help recording a bill, please see the article linked below.
Before You Begin
Please review the following requirements before applying the credit:
The bill must be marked as paid by “Check.”
This indicates the bill is an open payable with no payments applied.Split payments require separate bills.
If part of the bill will be covered by a credit and the remaining balance paid by credit card, you must create two separate bills:
One for the portion being offset by the credit
One for the portion being paid by credit card
How to Apply the Credit
Once all entries are recorded, follow these steps:
Go to the Payments window.
This will display both vendor credits and unpaid bills.Select (tag) the credit and the bill you want to apply it to.
If the amounts do not match (e.g., $50 and -$50), update the payment amount:
Select one of the entries
Click Actions > Modify Amount
Adjust the payment amount as needed
Note: This does not change the bill total—only the amount being applied.
Once the amounts match, ensure both entries are selected.
Then click Actions > Offset to apply the credit.
Any remaining balance (on either the bill or the credit) will continue to display in the Payments window.
Common Situations
1) Credits cannot be applied across vendors
Credits and bills must belong to the same vendor. For example, a credit from Kravet cannot be applied to a Made Goods bill.
2) Credit card involvement requires separate entries
If any portion of the transaction involves a credit card (either payment or refund), separate entries are required.
3) Adjusting an offset transaction
Once bills are offset, they cannot be edited directly. To make changes, you must first undo the offset:
Go to the Accounts Glossary and locate the Suspense Account
Edit the account and temporarily change the type from Equity to Asset (Bank/Checking)
Navigate to the Checkbook & Reconcile screen and select the Suspense Account
Set the date range to the period when the offset was recorded
Click the underlined date of the offset entry to confirm the details
Select Void to reverse the offset
This will return both entries to open payables in the Payments window.
Important: After completing this process, return to the Accounts Glossary and change the Suspense Account type back to Equity.
If you have any questions or run into issues, please contact us at support@designmanager.com and we’ll be happy to assist.