# Supplier credit notes for NetSuite

NetSuite has supplier credit notes built in. Pulsify reads vendor credit documents like invoices and flags one with a missing or unknown original invoice.

A supplier vendor credit reduces what you owe a vendor, usually for returns, short deliveries or a pricing error.

## What NetSuite does on its own

Vendor credits are entered on Enter Vendor Credits and applied to open bills. A credit can be entered by hand with no bill or created from an existing bill. Apply it with Auto-Apply or on the Apply subtab, or when paying on the Pay Bills screen.

## What you need in NetSuite

- Permission: Vendor Credits (Edit)

## Setting it up in NetSuite

Where to find it: Transactions > Payables > Enter Vendor Credits

1. Go to Transactions > Payables > Enter Vendor Credits.
2. Pick the Vendor and check the A/P Account, Reference No. and posting period.
3. Add the credit lines.
4. Tick Auto-Apply to use oldest bills first, or tick bills on the Apply subtab.
5. Click Save.

## Good to know in NetSuite

- You need open bills from that vendor to apply a credit.
- Deleting a bill payment does not unapply credits, so unapply them yourself.
- You can apply part of a credit and leave the rest open.

## How to do it in NetSuite

### How to apply a vendor credit to a vendor bill in NetSuite

In NetSuite, enter the vendor credit for the vendor, then allocate it to the vendor bill it credits. Pay the balance that is left. Full guide: https://www.pulsify.tech/how-to/apply-a-supplier-credit-note-in-netsuite/

## What Pulsify adds

1. Forward the credit note like any invoice. Pulsify recognises it.
2. Pulsify reads it line by line and looks for the original invoice.
3. It flags a credit note with a missing, unknown or smaller original invoice.
4. On approval the credit is created in NetSuite against the original bill.

Pulsify connects to NetSuite. We set up the connection for you.

What Pulsify does not do:

- Check the credit is applied before the next payment run, so you do not pay the full bill.

## Common questions

### How do I apply a supplier credit in NetSuite?

Enter it under Transactions > Payables > Enter Vendor Credits, then tick Auto-Apply or pick bills on the Apply subtab. You can also tick the credit beside the bill on Pay Bills.

### Can I apply part of a credit?

Yes. Oracle says you can apply part of a credit to a bill and leave the balance open for later bills. The credit total cannot be negative.

### 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.

## Sources

- https://docs.oracle.com/en/cloud/saas/netsuite/ns-online-help/section_N2393276.html

Source: https://www.pulsify.tech/supplier-credit-notes-for-netsuite/ (last checked 2026-10-19)