Supplier credit notes in NetSuite for wholesalers

Why it matters for wholesalers

A vendor credit 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 NetSuite

Start a return from the original purchase order. Transactions > Purchases > Enter Vendor Return Authorizations can be created from an existing PO and shows the items and prices from the original purchase. Use the reference field for the supplier's RMA number.
Ship the goods back on the Item Fulfillment page and click Save and Credit. NetSuite enters a bill credit for the quantities you shipped only.
If you already shipped, open the return authorization and click Refund. A bill credit opens with the lines filled in. Save it and apply it to open bills from that supplier.
On OneWorld with Centralized Purchasing and Billing you can create the return centrally, fulfil it in the subsidiary and location that holds the stock and credit it centrally.

What NetSuite does on its own

Vendor credits are entered on Enter Vendor Credits and applied to open bills. A credit can be entered by hand with no bill or created from an existing bill. Apply it with Auto-Apply or on the Apply subtab, or when paying on the Pay Bills screen.

You need open bills from that vendor to apply a credit.

What you need and the setup steps: Supplier credit notes for NetSuite.

Example

Example Glass Jars Pty Ltd delivers 1,000 jars. 80 arrive broken. The warehouse logs a short delivery and the supplier issues a vendor credit 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 NetSuite

How to apply a vendor credit to a vendor bill in NetSuite

What Pulsify adds

Pulsify reads vendor credit documents like invoices and flags one with a missing or unknown original invoice. Pulsify connects to NetSuite. We set up the connection for you. More about supplier credit notes in Pulsify or Pulsify for wholesalers.

More help

Sources

Last checked 2026-10-19.

Common questions

How do I claim a credit for returned stock in NetSuite?

Create a vendor return authorization, ideally from the purchase order. Ship the goods on Item Fulfillment and click Save and Credit. You can also click Refund on the authorization. Either route makes a bill credit for what was shipped, which you then apply to open bills.

Should credits be applied before payment?

Yes. Apply a vendor credit 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.

How do I apply a supplier credit in NetSuite?

Enter it under Transactions > Payables > Enter Vendor Credits, then tick Auto-Apply or pick bills on the Apply subtab. You can also tick the credit beside the bill on Pay Bills.

Pulsify setup guides

What the checks mean

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