Are you getting all your vendor credits, those supplier credits? Probably not. Understanding why you're not getting all your vendor credits is the first step for any #accountspayable or #accounting professional who wants to recover all their organizations #vendorcredits.

Are your suppliers hiding your credits? The answer to this and how some crafty suppliers do it will surprise you. Good Vendor Credit Management is critical for those who do not wish their suppliers to hold onto their credits. Good vendor credit management approaches are important so you don't lose any vendor credits, also called supplier credits.

Supplier credit management includes the proper handling of vendor credits. These often arise from duplicate payments, quantity discounts and other reasons.

Vendor credits can sometimes arise from quantity discounts the customer is not aware of, discounts for damaged goods and more. Recovering vendor credits is one way accounts payable groups can add hard dollars to the bottom line. For some vendors do not let their customers know that they have credits sitting on their books.

Whether your organization is getting all its vendor credits or not, each company should do statement audits to determine that status. Those supplier credits are money that should go right to your organization’s bottom line. It can impact profitability. Understanding why you are or are not getting all your vendor credits is the first step for any professional who wants to recover all their organizations vendor credits can take.

Link to Statement Audits: What They Are and Why They Matter

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