HOW-TO

How to apply a supplier credit memo to a supplier invoice in S/4HANA

Short answer

In S/4HANA, enter the supplier credit memo for the supplier, then allocate it to the supplier invoice it credits. Pay the balance that is left.

Last checked

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

  • Accounts payable authorisation

The S/4HANA way

Where to find it: Manage Supplier Invoices (F0859) > Create Supplier Invoice, choose Credit Memo; or Enter Invoice (MIRO) > Credit memo

  1. Create the supplier invoice and choose credit memo (the app also offers subsequent credit and subsequent debit).
  2. Match it to the PO or reference and select the items.
  3. Check the quantities and amounts SAP suggests.
  4. Post.

Limits in S/4HANA

  • You cannot credit more than the quantity already invoiced.
  • If you credit the full invoiced quantity, SAP expects the full invoiced amount to be credited.
  • SAP does not check that the amounts match the PO price or the invoice price.

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 S/4HANA against the original bill.

Pulsify connects to S/4HANA. 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

  • Crediting more than the quantity already invoiced.
  • Crediting the full invoiced quantity but not the full invoiced amount.

More help

Sources

Last checked 2026-10-19. Confidence: confirmed.

Common questions

How do I enter a supplier credit memo?

In Create Supplier Invoice choose credit memo. The app also offers subsequent credit and subsequent debit. Match it to the PO or reference, select the items, check the quantities and amounts SAP suggests, then Post.

Is there a limit on how much I can credit?

You cannot credit more than the quantity already invoiced. If you credit the full invoiced quantity, SAP expects the full invoiced amount to be credited.

Does SAP check the credit amount?

SAP does not check that the amounts match the PO price or the invoice price.

Does Pulsify read credit notes?

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

Pulsify setup guides

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