# How to apply a payable credit to a payable invoice in Sage 100 Contractor

In Sage 100 Contractor, enter the payable credit for the vendor, then allocate it to the payable 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 Sage 100 Contractor way

Where to find it: 4-2 Payable Invoices/Credits (credit invoice); 4-3 Vendor Payments

1. Enter a credit invoice in 4-2 Payable Invoices/Credits. It lowers the vendor balance and keeps status 1-Open.
2. Apply it to invoices in 4-3 Vendor Payments, or apply it when you save an invoice (use Reference# for the invoice).
3. When fully applied it goes to 4-Paid.

## Limits in Sage 100 Contractor

- You cannot reverse a credit invoice after applying it. Make reversing entries for a wrong application.

## 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 Sage 100 Contractor against the original bill.

Pulsify connects to Sage 100 Contractor. 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

- Applying the credit to the wrong invoice. It cannot be reversed.
- Leaving Reference# blank when applying at save.

## Common questions

### How do I enter a credit?

Enter a credit invoice in 4-2 Payable Invoices/Credits. It lowers the vendor balance and keeps status 1-Open.

### How do I apply it?

Apply it to invoices in 4-3 Vendor Payments, or when you save an invoice (use Reference# for the invoice). When fully applied it goes to 4-Paid.

### Can I undo an application?

No. You cannot reverse a credit invoice after applying it. Make reversing entries for a wrong application.

### Does Pulsify read credit notes?

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

## Sources

- https://help-sage100contractor.na.sage.com/Sage100Contractor/US/25_1/Content/Modules/4-Accounts_Payable/About_payable_credits.htm
- https://help-sage100contractor.na.sage.com/Sage100Contractor/US/25_1/Content/Modules/4-Accounts_Payable/Entering_payable_invoices.htm

Source: https://www.pulsify.tech/how-to/apply-a-supplier-credit-note-in-sage-100-contractor/ (last checked 2026-10-19)