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Vendor Debts isn't in the menu
Your store must be a marketplace, and the module must be on.
Payout wasn't reduced by the debt
Check the debt is Active (not pending) and the Vendor Debts module is on. Deductions happen when the payout batch is generated, not for batches made earlier.
Debt shows ₹0 repaid
Expected, for the same reason.
Can't cancel a debt
Only active (or pending) debts can be cancelled.
Vendor disputes a debt
Check the description and your evidence; cancel it if it was raised in error.