Why it matters for retailers
- A credit note not matched to its original bill leaves a balance owing on the supplier account.
- Each store sends back stock, so the credit must be coded to the right store.
For retailers in S/4HANA
- For stock returned, post the return delivery. If automated settlement is on and the invoice is already posted, the system generates a credit memo for the returned quantity.
- For a price allowance or markdown credit, use subsequent credit in the supplier invoice app.
- You cannot credit more than the quantity already invoiced, and SAP does not check the credited price against the PO price.
What S/4HANA does on its own
Supplier credit memos are entered in the same supplier invoice app and refer to the invoice or PO items they correct. The app also offers subsequent credit and subsequent debit.
If you credit the full invoiced quantity, SAP expects the full invoiced amount to be credited.
What you need and the setup steps: Supplier credit notes for S/4HANA.
Example
Example Brand Pty Ltd issues a supplier credit memo for 30 damaged units returned by the Chermside store.
| Line | Amount | What the check finds |
|---|---|---|
| Original invoice, 200 units | $3,000.00 | Paid at $15 each |
| Credit note, 30 units | -$450.00 | Matches the store's return form |
| Net owed on invoice | $2,550.00 | Credit applied to the Chermside store |
The credit is matched to the original invoice and coded to the Chermside store. The net owed is $2,550 plus GST.
Common mistakes
- Leaving credits on the statement without applying them to the invoice.
- Coding credits to head office, so store margins are wrong.
Step-by-step guides for S/4HANA
What Pulsify adds
Pulsify reads supplier credit memo documents like invoices and flags one with a missing or unknown original invoice. Pulsify connects to S/4HANA. We set up the connection for you. More about supplier credit notes in Pulsify or Pulsify for retailers.
More help
- Multi-entity accounts payable in S/4HANA for retailers
- Invoice capture in S/4HANA for retailers
- Line item coding in S/4HANA for retailers
- Supplier statement reconciliation in S/4HANA for retailers
- All S/4HANA how-to guides
Sources
Last checked 2026-10-19.
- help.sap.com/docs/SAP_S4HANA_ON-PREMISE/af9ef57f504840d2b81be8667206d485/4e246b54f94c8f4ce10000000a4450e5.html
- help.sap.com/docs/SAP_S4HANA_ON-PREMISE/af9ef57f504840d2b81be8667206d485/3a71b6531de6b64ce10000000a174cb4.html
- learning.sap.com/courses/implementing-sap-s-4hana-cloud-public-edition-sourcing-and-procurement/outlining-automated-invoice-settlement_cc9f7a3a-71af-42eb-83c1-71f78f4a10fe
- www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices
Common questions
How does S/4HANA credit a retailer for returned goods?
Post a return delivery. With automated invoice settlement on and an invoice already posted, the system raises a credit memo for the returned quantity. Otherwise enter a credit memo or subsequent credit in the supplier invoice app.
How do retailers track returns credits?
Log each return with store, quantity and reason. When the supplier's supplier credit memo arrives, match it to the return and to the original invoice. Apply it before payment.
Does SAP check the credit amount against the PO price?
No. The help says SAP does not check that the amounts match the PO price or the invoice price.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier credit notes in S/4HANA for retailers.