# How to apply a purchase credit memo to a purchase invoice in Sage X3

In Sage X3, enter the purchase credit memo for the supplier, then allocate it to the purchase 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.

## Before you start

- Sage X3 Financials and Purchasing
- Function and site rights for the screen

## The Sage X3 way

Where to find it: A/P-A/R accounting > Invoicing > Supplier invoices; Purchasing > Invoices > Invoices

1. Enter a credit memo as an invoice type (credit memo) in Purchasing > Invoices > Invoices, or as a credit note in Supplier invoices.
2. Select the original invoice lines. The credit memo shows the original invoice number.
3. Choose a full credit memo (cancels the invoice), a partial one (price or quantity dispute) or a credit memo on a return.
4. On validation the credit memo and invoice can match automatically depending on the LETAUTCNO parameter.

## Limits in Sage X3

- Partial credit memos adjust stock valuation.

## 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 X3 against the original bill.

Pulsify connects to Sage X3. 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 a full credit memo for a price dispute, which cancels the whole invoice.
- Not checking the LETAUTCNO parameter, so credit memos do not match automatically.

## Common questions

### Which type of credit do I enter?

Enter it as an invoice type (credit memo) in Purchasing > Invoices > Invoices, or as a credit note in Supplier invoices. Select the original invoice lines.

### What kinds of credit memo are there?

A full one that cancels the invoice, a partial one for a price or quantity dispute or a credit memo on a return.

### Does the credit memo match the invoice by itself?

On validation they can match automatically depending on the LETAUTCNO parameter. Partial credit memos adjust stock valuation.

### Does Pulsify read credit notes?

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

## Sources

- https://online-help.sagex3.com/erp/12/en-us/Content/FCT/GESPIH.htm
- https://online-help.sagex3.com/erp/12/en-us/Content/FCT/GESBIS.htm

Source: https://www.pulsify.tech/how-to/apply-a-supplier-credit-note-in-sage-x3/ (last checked 2026-10-19)