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
- Sage 300 Accounts Payable
- Security authorisation for the screen
The Sage 300 way
Where to find it: Accounts Payable > A/P Invoice Entry (credit note)
- In Invoice Entry choose Document Type Credit Note.
- Optionally set Apply To Document to the invoice. If it applies to several invoices leave it blank.
- Enter and post the batch.
- Apply the credit later in Payment Entry (Applying Prepayments and Credit Notes).
Limits in Sage 300
- Discounts are not applied to credit notes or debit notes.
Words Sage 300 uses
- Batch. A group of invoices entered together and then posted together.
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 Sage 300 against the original bill.
Pulsify connects to Sage 300. 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
- Posting the credit note and never applying it in Payment Entry.
- Expecting a payment discount to reduce a credit note.
More help
- How to apply a purchase credit memo to a purchase invoice in Business Central
- 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 match a vendor invoice to a purchase order in Sage 300
- How to put a disputed vendor invoice on hold in Sage 300
- All Sage 300 how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
Common questions
How do I enter a credit note?
In Invoice Entry choose Document Type Credit Note. Set Apply To Document to the invoice, or leave it blank if it applies to several. Enter and post the batch.
When is the credit applied?
Later, in Payment Entry (Applying Prepayments and Credit Notes).
Do payment discounts apply to credit notes?
No. Discounts are not applied to credit notes or debit notes.
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 Sage 300.