# Supplier credit notes for Sage 50

Sage 50 has supplier credit notes built in. Pulsify reads purchase credit note documents like invoices and flags one with a missing or unknown original invoice.

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

## What Sage 50 does on its own

Supplier credit notes are entered on Batch credit under Suppliers. The window mirrors Batch invoice. A credit only clears an invoice once you allocate it.

- A credit only clears an invoice once allocated.

## What you need in Sage 50

- Sage 50 Accounts (UK)

## Setting it up in Sage 50

Where to find it: Suppliers > Batch credit

1. Go to Suppliers and select Batch credit.
2. Enter A/C, Date, Due on, Credit No and Ex.Ref.
3. Check the N/C. The supplier default fills in and you can change it.
4. Enter the Dept, net value and tax code.
5. Check the batch totals and Save.
6. Allocate the credit to the invoice so it clears.

## Good to know in Sage 50

- The Ex.Ref field holds the supplier's own reference.
- Allocation can be done from the supplier payment or the allocate screen.
- Batch credit uses the same layout as Batch invoice, so staff who know one can use the other.

## How to do it in Sage 50

### How to apply a purchase credit note to a purchase invoice in Sage 50

In Sage 50, enter the purchase credit note for the supplier, then allocate it to the purchase invoice it credits. Pay the balance that is left. Full guide: https://www.pulsify.tech/how-to/apply-a-supplier-credit-note-in-sage-50/

### How to reconcile a supplier statement to your purchase invoice records in Sage 50

Sage 50 has no statement import or automatic matching. Reconciling is manual. Run Aged Creditors or the supplier Activity screen at the statement date and tick off each line by hand. Full guide: https://www.pulsify.tech/how-to/reconcile-a-supplier-statement-in-sage-50/

## 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 Sage 50 against the original bill.

Pulsify connects to Sage 50. 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 enter a supplier credit note in Sage 50?

Go to Suppliers and select Batch credit. Enter the account, date, credit number, nominal code, net value and tax code. Save, then allocate the credit to the invoice.

### Why is the invoice still open after I entered the credit?

A credit only clears an invoice once it is allocated. Allocate the credit to the invoice from the supplier payment or the allocate screen.

### Does Batch credit use the supplier default nominal code?

Yes. The supplier default fills in on the line and you can overwrite it, the same as on Batch invoice.

### 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://gb-kb.sage.com/portal/app/portlets/results/view2.jsp?k2dockey=200427112604993
- https://gb-kb.sage.com/portal/app/portlets/results/view2.jsp?k2dockey=200427112400767
- https://my.sage.co.uk/public/help/askarticle.aspx?articleid=6753

Source: https://www.pulsify.tech/supplier-credit-notes-for-sage-50/ (last checked 2026-10-19)