Why it matters for wholesalers
- A credit note 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 Sage 300
- For goods sent back, enter a return in Return Entry and then create the credit note from the return in Credit/Debit Note Entry. A credit note made from a return completes the return. You cannot recall a posted credit note.
- If you change the returned quantity or cost on the credit note, posting it adjusts the quantity on hand and the item cost in Inventory Control.
- Freight that was prorated to returned items follows the Return Proration choice on the additional cost code. You can leave it as it was or prorate it to the remaining items on the receipt. You can also expense it to the Return Account.
- A supplier volume rebate is a credit note entered in A/P Invoice Entry with no applied to invoice number. Apply it later in A/P Payment Entry. Discounts are not applied to credit notes.
What Sage 300 does on its own
Credit notes are entered in A/P Invoice Entry with Document Type Credit Note. You can set Apply To Document to the invoice or leave it blank if the credit covers several invoices. The credit is applied later in Payment Entry.
- Discounts are not applied to credit notes.
Purchase Orders also handles returns and credit or debit notes, with the contract cost as the default cost.
What you need and the setup steps: Supplier credit notes for Sage 300.
Example
Example Glass Jars Pty Ltd delivers 1,000 jars. 80 arrive broken. The warehouse logs a short delivery and the supplier issues a credit note 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 Sage 300
What Pulsify adds
Pulsify reads credit note documents like invoices and flags one with a missing or unknown original invoice. Pulsify connects to Sage 300. We set up the connection for you. More about supplier credit notes in Pulsify or Pulsify for wholesalers.
More help
- Supplier credit notes in Sage X3 for wholesalers
- Supplier credit notes in SAP B1 for wholesalers
- Supplier credit notes in SYSPRO for wholesalers
- Duplicate invoice checks in Sage 300 for wholesalers
- PO matching in Sage 300 for wholesalers
- Supplier price checks in Sage 300 for wholesalers
- Supplier statement reconciliation in Sage 300 for wholesalers
- All Sage 300 how-to guides
Sources
Last checked 2026-10-19.
Common questions
How do I record a supplier volume rebate in Sage 300?
Enter a credit note in A/P Invoice Entry and leave the applied to document blank, because the rebate covers several invoices. Apply it later in A/P Payment Entry. Discounts are not applied to credit notes or debit notes.
How do I make sure a short delivery produces a credit?
Book the real received quantity on the receipt the same day. The difference between ordered and received is the claim. Send the docket to the supplier and ask for the credit before the bill is paid.
Do payment discounts apply to credit notes?
No. Sage 300 does not apply discounts to credit notes or debit notes.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier credit notes in Sage 300 for wholesalers.