A supplier credit note reduces what you owe a supplier, usually for returns, short deliveries or a pricing error.
What Sage 200 does on its own
Supplier credit notes are entered in the Purchase Ledger against the supplier account and nominal codes. For goods returned, the credit note can be matched to purchase returns and goods despatched notes in POP. You then allocate the credit note to the invoice.
- Allocation is a separate step after posting.
What you need in Sage 200
- Sage 200 Purchase Ledger
- Sage 200 Purchase Order Processing for returns
Setting it up in Sage 200
Where to find it: Purchase Ledger > Enter transactions > Credit Note
- Open Purchase Ledger > Enter transactions > Credit Note and select the supplier account.
- Enter the goods value, VAT value and nominal analysis.
- For returned goods, record the return in POP and match the credit note to the goods despatched note.
- Post the credit note.
- Allocate it to the invoice it relates to.
Good to know in Sage 200
- Batched Transactions can check credit notes against a batch total.
- If credit note authorisation applies, the note must be authorised before you can allocate it.
- Credit notes can also arrive through the Import Transactions utility.
How to do it in Sage 200
How to apply a credit note to a purchase invoice in Sage 200
In Sage 200, enter the credit note for the supplier, 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 Sage 200 against the original bill.
Pulsify connects to Sage 200. 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 Business Central
- Supplier credit notes for MYOB Acumatica
- Supplier credit notes for Sage 300
- Duplicate invoice checks for Sage 200
- Invoice fraud checks for Sage 200
- Line item coding for Sage 200
- All Sage 200 how-to guides
Sources
Last checked 2026-10-19.
Common questions
How do I enter a supplier credit note in Sage 200?
Open Purchase Ledger > Enter transactions > Credit Note, pick the supplier account and enter the values and nominal analysis. Post it, then allocate it to the invoice.
Can I match a credit note to returned goods?
Yes. In Purchase Order Processing you can match the credit note to purchase returns and goods despatched notes. This needs the POP module.
Why can't I allocate my credit note?
If invoice authorisation is on, an unauthorised credit note cannot be allocated to an invoice. Authorise it first on the Authorisation screen.
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
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