Which of the following is NOT a way to create vendor credit?

Creating vendor credits is essential for managing financial transactions involving returns, overpayments, or adjustments with suppliers. The correct answer highlights an option that does not typically align with established methods for generating vendor credits.

Vendor credits can be generated manually without bills, which allows flexibility in cases where direct references to bills aren’t necessary. Additionally, they can be created directly from an original vendor bill, facilitating straightforward credit management linked to specific transactions. Similarly, vendor returns allow credits to be issued based on goods returned to suppliers, ensuring that inventory and financial records accurately reflect the return process.

In contrast, creating vendor credits from future expense estimates is not a recognized method in typical vendor credit processes. Future expense estimates pertain to planned expenses rather than actual transactions completed with a vendor. Thus, they do not provide a direct basis for generating credits since credits are meant to address specific past transactions, adjustments, or returns rather than anticipated future costs. This distinction is crucial for maintaining accurate financial records and understanding vendor relationships.