diff --git a/src/containers/Purchases/Bills/BillsLanding/BillsTable.js b/src/containers/Purchases/Bills/BillsLanding/BillsTable.js
index f2a2ef353..151e14603 100644
--- a/src/containers/Purchases/Bills/BillsLanding/BillsTable.js
+++ b/src/containers/Purchases/Bills/BillsLanding/BillsTable.js
@@ -70,6 +70,11 @@ function BillsDataTable({
     history.push(`/bills/${bill.id}/edit`);
   };
 
+  // Handle convert to vendor credit.
+  const handleConvertToVendorCredit = ({ id }) => {
+    history.push(`/vendor-credits/new?from_bill_id=${id}`, { billId: id });
+  };
+
   // Handle bill delete action.
   const handleDeleteBill = (bill) => {
     openAlert('bill-delete', { billId: bill.id });
@@ -137,6 +142,7 @@ function BillsDataTable({
           onQuick: handleQuickPaymentMade,
           onAllocateLandedCost: handleAllocateLandedCost,
           onViewDetails: handleViewDetailBill,
+          onConvert: handleConvertToVendorCredit,
         }}
       />
     </DashboardContentTable>
diff --git a/src/containers/Purchases/Bills/BillsLanding/components.js b/src/containers/Purchases/Bills/BillsLanding/components.js
index 289815252..86427d54a 100644
--- a/src/containers/Purchases/Bills/BillsLanding/components.js
+++ b/src/containers/Purchases/Bills/BillsLanding/components.js
@@ -34,6 +34,7 @@ export function ActionsMenu({
     onOpen,
     onDelete,
     onQuick,
+    onConvert,
     onViewDetails,
     onAllocateLandedCost,
   },
@@ -53,6 +54,11 @@ export function ActionsMenu({
           text={intl.get('edit_bill')}
           onClick={safeCallback(onEdit, original)}
         />
+        <MenuItem
+          icon={<Icon icon="convert_to" />}
+          text={intl.get('convert_to_vendor_credit')}
+          onClick={safeCallback(onConvert, original)}
+        />
 
         <If condition={!original.is_open}>
           <MenuItem
diff --git a/src/containers/Purchases/CreditNotes/CreditNoteForm/VendorCreditNoteForm.js b/src/containers/Purchases/CreditNotes/CreditNoteForm/VendorCreditNoteForm.js
index 0a5639ba5..357c874d8 100644
--- a/src/containers/Purchases/CreditNotes/CreditNoteForm/VendorCreditNoteForm.js
+++ b/src/containers/Purchases/CreditNotes/CreditNoteForm/VendorCreditNoteForm.js
@@ -3,7 +3,7 @@ import { useHistory } from 'react-router-dom';
 import { Formik, Form } from 'formik';
 import { Intent } from '@blueprintjs/core';
 import intl from 'react-intl-universal';
-import { isEmpty } from 'lodash';
+import { isEmpty, pick } from 'lodash';
 import classNames from 'classnames';
 import { CLASSES } from 'common/classes';
 import {
@@ -50,6 +50,7 @@ function VendorCreditNoteForm({
     isNewMode,
     submitPayload,
     vendorCredit,
+    bill,
     createVendorCreditMutate,
     editVendorCreditMutate,
   } = useVendorCreditNoteFormContext();
@@ -72,6 +73,9 @@ function VendorCreditNoteForm({
             ...(vendorcreditAutoIncrement && {
               vendor_credit_number: vendorCreditNumber,
             }),
+            ...transformToEditForm({
+              ...pick(bill, ['vendor_id', 'entries']),
+            }),
           }),
     }),
     [vendorCredit, base_currency],
diff --git a/src/containers/Purchases/CreditNotes/CreditNoteForm/VendorCreditNoteFormProvider.js b/src/containers/Purchases/CreditNotes/CreditNoteForm/VendorCreditNoteFormProvider.js
index 01d6befee..4c914a532 100644
--- a/src/containers/Purchases/CreditNotes/CreditNoteForm/VendorCreditNoteFormProvider.js
+++ b/src/containers/Purchases/CreditNotes/CreditNoteForm/VendorCreditNoteFormProvider.js
@@ -1,6 +1,8 @@
 import React from 'react';
+import { useLocation } from 'react-router-dom';
+import { isEmpty, pick } from 'lodash';
 import DashboardInsider from 'components/Dashboard/DashboardInsider';
-
+import { transformToEditForm } from './utils';
 import {
   useCreateVendorCredit,
   useEditVendorCredit,
@@ -8,6 +10,7 @@ import {
   useItems,
   useVendors,
   useSettingsVendorCredits,
+  useBill,
 } from 'hooks/query';
 
 const VendorCreditNoteFormContext = React.createContext();
@@ -16,6 +19,10 @@ const VendorCreditNoteFormContext = React.createContext();
  * Vendor Credit note data provider.
  */
 function VendorCreditNoteFormProvider({ vendorCreditId, ...props }) {
+  const { state } = useLocation();
+  
+  const billId = state?.billId;
+
   // Handle fetching the items table based on the given query.
   const {
     data: { items },
@@ -39,6 +46,11 @@ function VendorCreditNoteFormProvider({ vendorCreditId, ...props }) {
       enabled: !!vendorCreditId,
     });
 
+  // Handle fetch bill details.
+  const { isLoading: isBillLoading, data: bill } = useBill(billId, {
+    enabled: !!billId,
+  });
+
   // Form submit payload.
   const [submitPayload, setSubmitPayload] = React.useState();
 
@@ -56,6 +68,7 @@ function VendorCreditNoteFormProvider({ vendorCreditId, ...props }) {
     vendorCredit,
     submitPayload,
     isNewMode,
+    bill,
 
     isVendorCreditLoading,
 
@@ -70,7 +83,8 @@ function VendorCreditNoteFormProvider({ vendorCreditId, ...props }) {
         isVendorCreditLoading ||
         isItemsLoading ||
         isVendorsLoading ||
-        isVendorCreditLoading
+        isVendorCreditLoading ||
+        isBillLoading
       }
       name={'vendor-credit-form'}
     >