MarminDeveloper Docs
BusinessesPartnersProduct Wiki

What is a Purchase Credit Note?

A Purchase Credit Note is a self-billed credit note created by the buyer to reduce or cancel a previously issued purchase invoice.

It is used when the buyer, acting as the invoice issuer, needs to adjust a purchase transaction while the supplier remains the taxable supplier.

Purchase credit notes are commonly used in:

  • Self-billing arrangements

  • Reverse charge scenarios

  • Situations where the buyer must correct or reverse a purchase invoice

When to Use This API

Use the Purchase Credit Note API when:

  • A purchase invoice has already been issued by the buyer (self-billing)

  • The invoice amount or VAT needs to be reduced

  • The adjustment must be recorded for VAT and audit purposes

A purchase credit note must always reference an existing purchase invoice.

How the Purchase Credit Note API Works

When a purchase credit note is created through the API:

  1. The original purchase invoice is referenced

  2. Adjustment details and discrepancy reasons are recorded

  3. Line items and VAT reductions are calculated

  4. The buyer is recorded as the credit note issuer

  5. The supplier remains the taxable supplier

  6. An electronic representation is generated automatically for e-invoicing and reporting

The credit note becomes part of the system’s official VAT records.

Credit Note Type Code

All purchase credit notes created through this API are issued as Self-billed Credit Notes.

  • Credit Note Type Code: 261

  • This code identifies the document as a buyer-issued credit note

  • It is assigned automatically and cannot be overridden

Self-billing scenarios

Purchase credit notes are typically used when:

  • The buyer issues credit notes on behalf of the supplier

  • Invoice or VAT corrections are required under a self-billing agreement

  • Reverse charge VAT applies and the buyer accounts for VAT

  • The buyer is responsible for maintaining compliant purchase records

Self-billing must be contractually agreed between buyer and supplier.

Purchase Credit Note vs Sales Credit Note
Sales Credit Note (Type `381`or`81`)

  • Issued by the supplier

  • Supplier is the credit note issuer

  • Buyer receives the credit note

Purchase Credit Note (Type `261`)

  • Issued by the buyer on behalf of the supplier

  • Supplier remains the taxable supplier

  • Buyer is the credit note issuer

Next