Applying a supplier credit note means recording the credit and allocating it against the bill it reduces, so you pay only the balance.
Before you start
- Purchasing permissions
The Business Central way
Where to find it: Purchase Credit Memos, or create the credit memo from the posted purchase invoice
- Create a credit memo from the posted invoice, or copy the invoice lines.
- Enter the vendor's credit note number.
- On the Adjustment Details FastTab check the original invoice, date and reason (AU adjustment note rules).
- Post and apply the credit to the open invoice.
Limits in Business Central
- Correct and Cancel only work for unpaid invoices and not partial returns.
- Use purchase return orders for stock returns.
Good to know in Business Central
- The AU version sets Adjustment and BAS Adjustment flags for you.
Words Business Central uses
- Purchase credit memo. A document that reduces what you owe a vendor. This is the supplier credit note and the AU adjustment note.
The Pulsify way
- Forward the supplier's credit note to your Pulsify address. Pulsify recognises it as a credit note.
- Pulsify flags a credit note with a missing or unknown original invoice, or an original smaller than the credit.
- Choose the original bill and approve.
- Pulsify creates the credit note in Business Central against the original bill.
Pulsify connects to Business Central. We set up the connection for you.
What Pulsify does not do here
- Pulsify does not handle partial allocation across several bills.
- Credit note handling is limited to the cases listed above.
Common mistakes
- Using Correct or Cancel on a partial return or a paid invoice.
- Leaving the original invoice details empty on the Adjustment Details FastTab.
More help
- How to apply a debit adjustment to a bill in MYOB Acumatica
- How to apply a credit note to a purchase invoice in Sage 200
- How to apply a credit note to a vendor invoice in Sage 300
- How to match a purchase invoice to a purchase order in Business Central
- How to put a disputed purchase invoice on hold in Business Central
- All Business Central how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
- learn.microsoft.com/en-us/dynamics365/business-central/purchasing-how-process-purchase-returns-cancellations
- learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/australia/australian-business-numbers-and-adjustment-notes
- learn.microsoft.com/en-us/dynamics365/business-central/purchasing-how-correct-cancel-unpaid-purchase-invoices
- learn.microsoft.com/en-us/dynamics365/business-central/payables-how-apply-purchase-transactions-manually
Common questions
How do I credit a posted invoice?
Create a credit memo from the posted invoice, or copy the invoice lines. Enter the vendor's credit note number, then post and apply the credit to the open invoice.
What goes on Adjustment Details?
Check the original invoice, date and reason (AU adjustment note rules). The AU version sets the Adjustment and BAS Adjustment flags for you.
Can I use Correct or Cancel?
Only for unpaid invoices and not for partial returns. Use purchase return orders for stock returns.
Does Pulsify read credit notes?
Yes. It recognises supplier credit notes and flags a missing or unknown original invoice.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier bills in Business Central.