A supplier supplier credit memo reduces what you owe a supplier, usually for returns, short deliveries or a pricing error.
What S/4HANA does on its own
Supplier credit memos are entered in the same supplier invoice app and refer to the invoice or PO items they correct. The app also offers subsequent credit and subsequent debit.
What you need in S/4HANA
- Accounts payable authorisation
Setting it up in S/4HANA
Where to find it: Manage Supplier Invoices (F0859) > Create Supplier Invoice, choose Credit Memo; or Enter Invoice (MIRO) > Credit memo
- Create the supplier invoice and choose credit memo.
- Match it to the PO or reference and select the items.
- Check the quantities and amounts SAP suggests.
- Post.
Good to know in S/4HANA
- You cannot credit more than the quantity already invoiced.
- If you credit the full invoiced quantity, SAP expects the full invoiced amount to be credited.
- SAP does not check that the credited amounts match the PO price or the invoice price.
How to do it in S/4HANA
How to apply a supplier credit memo to a supplier invoice in S/4HANA
In S/4HANA, enter the supplier credit memo for the supplier, then allocate it to the supplier 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 S/4HANA against the original bill.
Pulsify connects to S/4HANA. 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 Dynamics 365 Finance
- Supplier credit notes for Kinetic
- Supplier credit notes for IFS Cloud
- Duplicate invoice checks for S/4HANA
- Invoice fraud checks for S/4HANA
- Line item coding for S/4HANA
- All S/4HANA how-to guides
Sources
Last checked 2026-10-19.
Common questions
Can S/4HANA credit part of an invoice?
Yes, up to the quantity already invoiced. If you credit the full quantity SAP expects the full invoiced amount to be credited.
Does SAP check the credit amount against the PO price?
No. The help says SAP does not check that the amounts match the PO price or the invoice price.
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 S/4HANA.