# Supplier credit notes for SAP B1

SAP B1 has supplier credit notes built in. Pulsify reads A/P credit memo documents like invoices and flags one with a missing or unknown original invoice.

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

## What SAP B1 does on its own

A/P credit memos.

## What you need in SAP B1

- Purchasing authorisation

## Setting it up in SAP B1

Where to find it: Purchasing - A/P > A/P Credit Memo; copy from A/P Invoice or Goods Return

1. Open A/P Credit Memo.
2. Copy from the A/P invoice or goods return, or enter a new credit memo.
3. Check the rows and amounts.
4. Choose Add.
5. Reconcile the credit memo with the invoice.

## Good to know in SAP B1

- A goods return counts under Goods Receipt PO and lowers the purchased amount in reports.
- A/P invoices are legally binding, so errors are cancelled or credited.
- Cancelled documents are left out of the Purchase Analysis report.

## How to do it in SAP B1

### How to apply a credit memo to a vendor invoice in SAP B1

In SAP B1, enter the A/P credit memo for the vendor, then allocate it to the A/P invoice it credits. Pay the balance that is left. Full guide: https://www.pulsify.tech/how-to/apply-a-supplier-credit-note-in-sap-business-one/

## 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 SAP B1 against the original bill.

Pulsify connects to SAP B1. 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 credit a Business One invoice?

Open A/P Credit Memo and copy from the A/P invoice, then Add and reconcile.

### Can I credit goods I sent back?

Yes. Copy from a Goods Return.

### Can I delete a posted invoice?

No. SAP says A/P invoices and goods receipt POs are legally binding, so cancel or credit them.

### 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://help.sap.com/docs/SAP_BUSINESS_ONE/68a2e87fb29941b5bf959a184d9c6727/44fd93db93202463e10000000a1553f7.html

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