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
- Operator access to the AP Credit notes activity
- eSignature AP Post credit note and AP Approve registered credit note if your site uses eSignatures
The SYSPRO way
Where to find it: Program List > Accounts Payable > Invoice Processing (AP Invoice Posting) > Transaction type Credit note
- Pick Transaction type Credit note.
- Enter the invoice number the credit applies to.
- Enter the amount, tax and ledger distribution.
- Post.
- Open AP Invoice Posting and set Transaction type to Credit note. The supplier's credit note can be registered first and approved later.
Limits in SYSPRO
- You can re-establish invoice details if the invoice no longer exists in AP.
- A credit note cannot be posted against an invoice that is on hold, has a manual check posted against it or has been released for payment.
- A credit note that has been released for payment cannot be approved.
Good to know in SYSPRO
- Registered credit notes are approved the same way as invoices.
- The Credit note field wants the number of the invoice the credit is against. If that invoice is gone from Accounts Payable you can re-establish its details.
- A credit note, debit note or adjustment can also be posted to an existing invoice that has been revalued.
- A supplier's credit can be captured as a negative amount when you load opening history with AP Initial Invoice Capture.
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 SYSPRO against the original bill.
Pulsify connects to SYSPRO. 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.
Example in SYSPRO
Example Plumbing Supplies billed $3,300 including GST on invoice INV-2210. The agreed price was lower and they issue a credit.
| Line | Amount | Tagged to |
|---|---|---|
| Invoice INV-2210 | $3,300.00 | Transaction type Invoice |
| Credit against INV-2210 | -$330.00 | Transaction type Credit note |
| Open balance | $2,970.00 | Left to pay |
If INV-2210 were on hold or already released for payment, SYSPRO would refuse the credit note until that was fixed.
Common mistakes
- Entering a credit note without the invoice number it applies to.
- Leaving a registered credit note unapproved.
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 supplier invoice to a purchase order in SYSPRO
- How to put a disputed supplier invoice on hold in SYSPRO
- All SYSPRO how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
Common questions
Which transaction type do I pick?
Pick Transaction type Credit note in AP Invoice Posting, then enter the invoice number the credit applies to.
What if the original invoice is no longer in AP?
You can re-establish the invoice details.
Do credit notes need approval?
Registered credit notes are approved the same way as invoices.
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 SYSPRO.