What is a Vendor Credit? 

A "Vendor Credit" refers to a refund that a Trade Partner issues to Homebound for a given commitment/cost item. Credits may be issued for a multitude of reasons: a lowered price for materials, an overpayment made by Homebound to the trade, or most commonly, for unused materials.

Why create a Credit ?

When a Vendor credit is received, it needs to be applied to the appropriate project and commitment in Blueprint in order to accurately track each project budget. Once the credit is approved, it will be available for use on future projects or work contracted with the trade.

Who creates a Vendor Credit?

The Purchasing Agent creates a Commitment Change order (VPO) . Then accounting will add the Vendor Credit to the VPO see the steps below:

*Note that Procurement may also need to create a Change Event or generate the "VPO" from the Change Event. The VPO would be for a negative amount.

How to Issue a Vendor Credit or Back Charge in Blueprint 

Step 1: Press "Add Vendor Credit" in the associated Commitment CO/VPO 

All vendor credits must be applied to a commitment change order/VPO, this guarantees that both the committed and actuals amounts align for line items in the budget. To draft a vendor credit, press "Add Vendor Credit" in the actions menu at the top right of the commitment change order/VPO screen. 

Read more on commitment change orders/VPOs here Issuing a Commitment Change Order (VPO)

Step 2: Enter in all Vendor Credit Details 

The required information to create a vendor credit includes:

• Credit Number
• Credit Date
• Credit Amount to the appropriate cost item
• Accompanying Documentation 

An optional description field is also present if further information is required for reference. 

Step 3: Press Create to Finalize the Vendor Credit 

Once all accompanying details are added to the vendor credit, press "Create." By pressing this button, the project manager associated with the build stage (pre-construction/construction) will be sent an automated notification to approve the credit.

Step 4: Project Manager approves the Vendor Credit 

From the automated notification, the project manager will be navigated to the credit overview screen. In this screen, they will click "Approvals" in the top right to add their approval and save. Once the credit is approved, it will appear as a negative bill against the commitment, completing the vendor credit process. 

To review your changes in the budget screen, find the associated line item and click the "Trade Billed" value. In drawer, you can see the composite of approved bills and credits against the line item.