Why it matters for wholesalers
- A purchase credit memo that is never applied reduces nothing. The bill gets paid in full and the credit sits as an open balance.
- Returns, rebates and settlement documents look like credits but follow different rules. Mixing them loses the trail.
For wholesalers in Business Central
- Create the credit memo from the posted purchase invoice so the invoice lines are copied in. For stock going back to the supplier use a purchase return order, which issues the credit memo for you.
- On the Purchase Return Order page, Get Posted Document Lines to Reverse copies lines from posted documents. This returns stock at the cost it was bought at (exact cost reversing).
- Posting the credit memo also reverts item charges that were assigned to the posted document. Freight and duty you added to the stock are taken back out of its value.
- One return order can cover items from several purchase documents, which helps when one carton of returns spans several deliveries.
- In Australia a supplier credit is an adjustment note. On the Adjustment Details FastTab, Adjustment Applies-to holds the number of the document it applies to. Copy Document fills it in for you. You can also pick a paid or closed document.
- Each credit memo needs a Reason Code to meet the legal rules for an adjustment note. An adjustment note applies to a single document. Turn on Adjustment Mandatory in General Ledger Setup to get a prompt when Adjustment Applies-to is blank.
What Business Central does on its own
Purchase credit memos and return orders, with AU adjustment note fields.
The Australian version sets the Adjustment and BAS Adjustment flags for you.
What you need and the setup steps: Supplier credit notes for Business Central.
Example
Example Glass Jars Pty Ltd delivers 1,000 jars. 80 arrive broken. The warehouse logs a short delivery and the supplier issues a purchase credit memo for 80 jars.
| Line | Amount | What the check finds |
|---|---|---|
| Original invoice 7730, 1,000 jars | $4,000.00 | Paid at $4.00 a jar |
| Credit note CN-402, 80 jars returned | -$320.00 | Matches the damaged quantity on the delivery docket |
| Net payable after credit | $3,680.00 | Credit applied against invoice 7730 |
The credit is matched to invoice 7730 through the delivery docket and applied. The wholesaler pays $3,680 plus GST, not the full invoice.
Common mistakes
- Letting the supplier issue a credit but never applying it to the invoice it belongs to.
- Accepting a credit for a lower quantity than the damage report shows.
Step-by-step guides for Business Central
What Pulsify adds
Pulsify reads purchase credit memo documents like invoices and flags one with a missing or unknown original invoice. Pulsify connects to Business Central. We set up the connection for you. More about supplier credit notes in Pulsify or Pulsify for wholesalers.
More help
- Supplier credit notes in Dynamics 365 Finance for wholesalers
- Supplier credit notes in Kinetic for wholesalers
- Supplier credit notes in MYOB Acumatica for wholesalers
- Duplicate invoice checks in Business Central for wholesalers
- PO matching in Business Central for wholesalers
- Supplier price checks in Business Central for wholesalers
- Supplier statement reconciliation in Business Central for wholesalers
- All Business Central how-to guides
Sources
Last checked 2026-10-19.
- learn.microsoft.com/en-us/dynamics365/business-central/purchasing-how-process-purchase-returns-cancellations
- learn.microsoft.com/en-us/dynamics365/business-central/LocalFunctionality/Australia/australian-business-numbers-and-adjustment-notes
- www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices
Common questions
How do I return wholesale stock to a supplier in Business Central?
Create a purchase return order, copy the lines from the posted purchase documents and ship the goods back. The return order issues the purchase credit memo. Stock leaves at its original cost and any item charges assigned to the invoice are reversed.
Should credits be applied before payment?
Yes. Apply a purchase credit memo to its original bill before you create the payment, so the net amount is paid. If the credit arrives later, ask for a refund or offset on the next invoice.
Does the credit memo carry the Australian adjustment note details?
Yes. The Adjustment Details FastTab holds the original invoice, date and reason. The AU version sets the Adjustment and BAS Adjustment flags. Check them before you post.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier credit notes in Business Central for wholesalers.