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 Sage X3
- Pick the right credit memo type. A full credit memo cancels the invoice and stock valuation stays at the receipt value. A partial credit memo for a price or quantity dispute adjusts stock valuation.
- For returned goods use a credit memo on return. Preload it from the returns pending credit memos in the selection panel. It affects the stock entry of the original receipt and not the stock issue of the return.
- No landed cost coefficient is applied to additional invoices or credit memos.
- On Supplier invoices the Invoice to credit memo action turns an invoice into a credit memo after you confirm it.
- Linking a credit memo to an invoice is not mandatory. Without a link X3 shows a warning and creates no matching on validation. The INVCAN parameter can make a credit memo a Cancellation invoice that is always matched.
What Sage X3 does on its own
A credit memo is an invoice type in Purchasing > Invoices > Invoices or a credit note in Supplier invoices. It links to the original invoice and the original invoice number fills in. You can credit in full, in part or on a return.
- Partial credit memos adjust stock valuation.
The match between credit memo and invoice depends on the LETAUTCNO parameter at accounting validation.
What you need and the setup steps: Supplier credit notes for Sage X3.
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 Sage X3
What Pulsify adds
Pulsify reads purchase credit memo documents like invoices and flags one with a missing or unknown original invoice. Pulsify connects to Sage X3. We set up the connection for you. More about supplier credit notes in Pulsify or Pulsify for wholesalers.
More help
- Supplier credit notes in SAP B1 for wholesalers
- Supplier credit notes in SYSPRO for wholesalers
- Supplier credit notes in Business Central for wholesalers
- Duplicate invoice checks in Sage X3 for wholesalers
- PO matching in Sage X3 for wholesalers
- Supplier price checks in Sage X3 for wholesalers
- Supplier statement reconciliation in Sage X3 for wholesalers
- All Sage X3 how-to guides
Sources
Last checked 2026-10-19.
Common questions
How do I credit a short shipped wholesale order in Sage X3?
Raise a partial credit memo on the invoice for the price or quantity in dispute and X3 adjusts stock valuation. If the goods went back, create the credit memo on the return. It affects the stock entry of the original receipt.
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.
How do I enter a supplier credit in Sage X3?
Enter a credit memo invoice type in Purchasing > Invoices > Invoices, or a credit note in Supplier invoices. Select the original invoice lines and validate.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier credit notes in Sage X3 for wholesalers.