A supplier credit note reduces what you owe a supplier, usually for returns, short deliveries or a pricing error.
What IFS Cloud does on its own
Supplier credit notes are entered in Manual Supplier Invoice. For returned goods, the return is made in Purchasing with return type credit or rework. Match PO Receipts then lets the returned quantity match the credit note.
What you need in IFS Cloud
- Purchasing for returns
- Supplier Invoice user role
Setting it up in IFS Cloud
Where to find it: Manual Supplier Invoice (credit)
- Return the goods in Purchasing with return type credit or rework.
- Enter the supplier credit note in Manual Supplier Invoice.
- Use Match PO Receipts so the returned quantity matches the credit note.
- Authorise and post.
Good to know in IFS Cloud
- Credit and rework return types only work for stored purchase parts. Other parts are posted manually.
- Scrapped quantity can be handled at matching when no credit note comes.
- Matching stops you paying for returned goods.
How to do it in IFS Cloud
How to apply a credit note to a supplier invoice in IFS Cloud
In IFS Cloud, enter the credit note for the supplier, then allocate it to the supplier 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 IFS Cloud against the original bill.
Pulsify connects to IFS Cloud. 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 Dynamics 365 Finance
- Supplier credit notes for Kinetic
- Supplier credit notes for CloudSuite Industrial
- Duplicate invoice checks for IFS Cloud
- Invoice fraud checks for IFS Cloud
- Line item coding for IFS Cloud
- All IFS Cloud how-to guides
Sources
Last checked 2026-10-19.
Common questions
How do I enter a credit note in IFS?
In Manual Supplier Invoice, matched to the return through Match PO Receipts.
Does it work for all parts?
Credit and rework returns work for stored purchase parts only.
What if no credit note arrives?
Scrapped quantity can be handled at matching.
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 IFS Cloud.