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
- Enter a credit memo as an invoice type (credit memo) in Purchasing > Invoices > Invoices, or as a credit note in Supplier invoices.
- Select the original invoice lines. The credit memo shows the original invoice number.
- Choose a full credit memo (cancels the invoice), a partial one (price or quantity dispute) or a credit memo on a return.
- 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
- 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 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.
More help
- How to apply a vendor credit note to a vendor invoice in Dynamics 365 Finance
- How to apply a debit memo to a supplier invoice in Kinetic
- How to apply a credit note to a supplier invoice in IFS Cloud
- How to match a purchase invoice to a purchase order in Sage X3
- How to put a disputed purchase invoice on hold in Sage X3
- All Sage X3 how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
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.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier bills in Sage X3.