# Supplier credit notes for Sage X3

Sage X3 has supplier credit notes built in. Pulsify reads purchase credit memo documents like invoices and flags one with a missing or unknown original invoice.

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

## What Sage X3 does on its own

A credit memo is an invoice type in Purchasing > Invoices > Invoices or a credit note in Supplier invoices. It links to the original invoice and the original invoice number fills in. You can credit in full, in part or on a return.

- Partial credit memos adjust stock valuation.

## What you need in Sage X3

- Sage X3 Financials and Purchasing
- Function and site rights for the screen

## Setting it up in Sage X3

Where to find it: A/P-A/R accounting > Invoicing > Supplier invoices; Purchasing > Invoices > Invoices

1. Enter a credit memo as an invoice type in Purchasing > Invoices > Invoices or as a credit note in Supplier invoices.
2. Select the original invoice lines. The original invoice number fills in.
3. Choose full credit (cancels the invoice), partial (price or quantity dispute) or credit memo on a return.
4. Select Validation.
5. On validation the credit memo and invoice can match automatically, depending on the LETAUTCNO parameter.

## Good to know in Sage X3

- The match between credit memo and invoice depends on the LETAUTCNO parameter at accounting validation.
- A full credit memo cancels the invoice.

## How to do it in Sage X3

### How to apply a purchase credit memo to a purchase invoice in Sage X3

In Sage X3, enter the purchase credit memo 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-x3/

## 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 X3 against the original bill.

Pulsify connects to Sage X3. 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 in Sage X3?

Enter a credit memo invoice type in Purchasing > Invoices > Invoices, or a credit note in Supplier invoices. Select the original invoice lines and validate.

### Does a credit memo clear the invoice automatically?

It can. At accounting validation the LETAUTCNO parameter decides whether the credit memo and the original invoice match.

### What kinds of credit memo does Sage X3 support?

A full credit memo that cancels the invoice, a partial one for a price or quantity dispute and a credit memo on a return.

### 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://online-help.sagex3.com/erp/12/en-us/Content/FCT/GESPIH.htm
- https://online-help.sagex3.com/erp/12/en-us/Content/FCT/GESBIS.htm

Source: https://www.pulsify.tech/supplier-credit-notes-for-sage-x3/ (last checked 2026-10-19)