What is a Purchase Credit Memo in Business Central?

A document used to reverse or correct a posted purchase invoice, handling returns, price adjustments, or billing errors.

A Purchase Credit Memo in Business Central is used to reverse all or part of a posted purchase invoice. Common scenarios include returning defective goods to a vendor, correcting an overcharge, or adjusting quantities that were invoiced but never received.

When you post a purchase credit memo, BC creates negative vendor ledger entries that offset the original invoice. If items are being returned, inventory quantities are also adjusted. The credit memo can be applied directly against the original invoice to reduce the outstanding balance.

BC provides a convenient 'Copy Document' function that lets you create a credit memo directly from a posted purchase invoice, pre-filling all the line details. You can then adjust quantities or amounts as needed before posting the correction.

Related terms

• Purchase Invoice — A document recording a vendor's bill for goods or services received, used for accounts payable processing in Business Central.
• Vendor Ledger Entry — The detailed transaction log in BC recording every financial event related to a vendor — invoices, payments, and credit memos.
• Goods Receipt — The process of recording received items against a purchase order in Business Central, updating inventory and triggering accruals.
• Vendor (Supplier) — A company or person from whom you purchase goods or services, represented as a Vendor Card in Business Central.

How Zentriq helps

Zentriq's AI tools automate many of the manual processes around purchase credit memo in Business Central. Learn about the Zentriq Agent or try Zentriq PunchOut to see how AI simplifies procurement in BC.