A supplier purchase credit memo reduces what you owe a vendor, usually for returns, short deliveries or a pricing error.
What Business Central does on its own
Purchase credit memos and return orders, with AU adjustment note fields.
What you need in Business Central
- Purchasing permissions
Setting it up in Business Central
Where to find it: Purchase Credit Memos (search for it)
- Create a credit memo from the posted invoice, or copy the invoice lines.
- Enter the vendor's credit note number.
- On the Adjustment Details FastTab check the original invoice, date and reason.
- Post the credit memo.
- Apply it to the open invoice.
Good to know in Business Central
- The Australian version sets the Adjustment and BAS Adjustment flags for you.
- Correct and Cancel only work for unpaid invoices and not partial returns.
- Use purchase return orders for stock that goes back to the supplier.
How to do it in Business Central
How to apply a purchase credit memo to a purchase invoice in Business Central
In Business Central, enter the purchase credit memo for the vendor, then allocate it to the purchase invoice it credits. Pay the balance that is left.
What Pulsify adds
- Forward the credit note like any invoice. Pulsify recognises it.
- Pulsify reads it line by line and looks for the original invoice.
- It flags a credit note with a missing, unknown or smaller original invoice.
- On approval the credit is created in Business Central against the original bill.
Pulsify connects to Business Central. We set up the connection for you. More about supplier credit notes in Pulsify.
What Pulsify does not do
- Check the credit is applied before the next payment run, so you do not pay the full bill.
More help
- Supplier credit notes for MYOB Acumatica
- Supplier credit notes for Sage 200
- Supplier credit notes for Sage 300
- Duplicate invoice checks for Business Central
- Invoice fraud checks for Business Central
- Line item coding for Business Central
- All Business Central how-to guides
Sources
Last checked 2026-10-19.
Common questions
Does the credit memo carry the Australian adjustment note details?
Yes. The Adjustment Details FastTab holds the original invoice, date and reason. The AU version sets the Adjustment and BAS Adjustment flags. Check them before you post.
When do I use a return order instead of a credit memo?
Use a purchase return order when stock goes back to the supplier. Use a credit memo for price or service corrections. Correct and Cancel cover only unpaid invoices and not partial returns.
Should a credit note go through approval?
Yes. It changes what you owe. The person who agreed the return or price fix is often the right approver.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier credit notes in Business Central.