A supplier credit note reduces what you owe a vendor, usually for returns, short deliveries or a pricing error.
What Sage 300 does on its own
Credit notes are entered in A/P Invoice Entry with Document Type Credit Note. You can set Apply To Document to the invoice or leave it blank if the credit covers several invoices. The credit is applied later in Payment Entry.
- Discounts are not applied to credit notes.
What you need in Sage 300
- Sage 300 Accounts Payable
- Security authorisation for the screen
Setting it up in Sage 300
Where to find it: Accounts Payable > A/P Transactions > Invoice Entry
- Open A/P Invoice Entry and choose Document Type Credit Note.
- Enter the vendor and document details.
- Set Apply To Document to the invoice, or leave it blank for several invoices.
- Distribute the amount on the Details tab.
- Post the batch.
- Apply the credit in Payment Entry under Applying Prepayments and Credit Notes.
Good to know in Sage 300
- Discounts are not applied to credit notes or debit notes.
- Purchase Orders also handles returns and credit or debit notes, with the contract cost as the default cost.
- Credit notes post to the GL when the batch is posted.
How to do it in Sage 300
How to apply a credit note to a vendor invoice in Sage 300
In Sage 300, enter the credit note for the vendor, then allocate it to the A/P 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 300 against the original bill.
Pulsify connects to Sage 300. 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 200
- Duplicate invoice checks for Sage 300
- Invoice fraud checks for Sage 300
- Line item coding for Sage 300
- All Sage 300 how-to guides
Sources
Last checked 2026-10-19.
Common questions
How do I enter a vendor credit note in Sage 300?
In A/P Invoice Entry choose Document Type Credit Note and enter the vendor and amounts. Post the batch, then apply it to an invoice in Payment Entry.
Do payment discounts apply to credit notes?
No. Sage 300 does not apply discounts to credit notes or debit notes.
What if the credit covers several invoices?
Leave Apply To Document blank and apply the credit to each invoice later in Payment Entry.
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 Sage 300.