# Supplier credit notes in Kinetic for wholesalers

Kinetic has supplier credit notes built in. Short and damaged deliveries are routine in wholesale. Each one should produce an AP debit memo from the supplier, tied back to the original AP invoice.

## Why it matters for wholesalers

- An AP debit 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 Kinetic

- Returns linked to a PO flow to a debit memo (Epicor's word for a supplier credit). Get > Get DMR Debit Memos in AP Invoice Entry pulls debit memos for returned material.
- A DMR that is not PO related cannot be processed as a return to supplier with a debit memo. Ship it back with a Misc Shipper and have Finance create the debit memo once the supplier agrees.

## What Kinetic does on its own

Epicor calls a supplier credit a debit memo. It is entered in Debit Memo/Prepayment and applied to the invoice it corrects.

Print Debit Memo prints documents for one or a group of debit memos.

What you need and the setup steps: https://www.pulsify.tech/supplier-credit-notes-for-epicor-kinetic/

## Example

Example Glass Jars Pty Ltd delivers 1,000 jars. 80 arrive broken. The warehouse logs a short delivery and the supplier issues an AP debit memo for 80 jars.

- 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 Kinetic

- How to apply a debit memo to a supplier invoice in Kinetic: https://www.pulsify.tech/how-to/apply-a-supplier-credit-note-in-epicor-kinetic/

## What Pulsify adds

Pulsify reads AP debit memo documents like invoices and flags one with a missing or unknown original invoice. Pulsify connects to Kinetic. We set up the connection for you. More: https://www.pulsify.tech/invoice-processing-automation/

## Common questions

### How does a Kinetic wholesaler get credit for returned stock?

Returned material goes through the DMR process. If it is linked to the PO, a debit memo can be pulled into AP Invoice Entry. If it is not, ship it back on a Misc Shipper and create the debit memo by hand.

### Should credits be applied before payment?

Yes. Apply an AP debit 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.

### What does Kinetic call a supplier credit note?

A debit memo.

## Sources

- https://tomerlin-erp.com/wp-content/uploads/2017/01/Epicor10_FeatureSummaryHighlights_101500.pdf
- https://www.crawford-software.com/wp-content/uploads/2021/07/Apply-AP-Debit-Memos-in-Epicor-ERP.pdf
- https://www.epiusers.help/t/96444
- https://www.epiusers.help/t/60572
- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices

Source: https://www.pulsify.tech/supplier-credit-notes-in-epicor-kinetic-for-wholesalers/ (last checked 2026-10-19)