# How to apply a debit memo to a supplier invoice in Kinetic

In Kinetic, enter the AP debit memo for the supplier, then allocate it to the AP invoice it credits. Pay the balance that is left.

Applying a supplier credit note means recording the credit and allocating it against the bill it reduces, so you pay only the balance.

## The Kinetic way

Where to find it: Accounts Payable > General Operations > Debit Memo/Prepayment

1. Open Debit Memo/Prepayment and choose New > New Debit Memo (Epicor calls a supplier credit a debit memo)
2. On the Detail tab pick the invoice to correct or adjust
3. Choose Actions > Apply/Debit Memo/Correction Invoice
4. The invoice balance drops by the memo amount. Then run Payment Entry

## The Pulsify way

1. Forward the supplier's credit note to your Pulsify address. Pulsify recognises it as a credit note.
2. Pulsify flags a credit note with a missing or unknown original invoice, or an original smaller than the credit.
3. Choose the original bill and approve.
4. Pulsify creates the credit note in Kinetic against the original bill.

Pulsify connects to Kinetic. 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

- Running Payment Entry before applying the debit memo.
- Following menu names from older Epicor ERP 10 screens without checking Kinetic.

## Common questions

### Why is a supplier credit called a debit memo?

Epicor calls a supplier credit a debit memo. Open Debit Memo/Prepayment and choose New > New Debit Memo.

### How do I apply it?

On the Detail tab pick the invoice to correct. Choose Actions > Apply/Debit Memo/Correction Invoice. The invoice balance drops by the memo amount. Then run Payment Entry.

### Does Pulsify read credit notes?

Yes. It recognises supplier credit notes and flags a missing or unknown original invoice.

## Sources

- https://tomerlin-erp.com/wp-content/uploads/2017/01/Epicor10_FeatureSummaryHighlights_101500.pdf
- https://www.crawford-software.com/wp-content/uploads/2021/07/Apply-AP-Debit-Memos-in-Epicor-ERP.pdf
- https://www.epiusers.help/t/96444

Source: https://www.pulsify.tech/how-to/apply-a-supplier-credit-note-in-epicor-kinetic/ (last checked 2026-10-19)