I don’t add to inventory using a Purchase Invoice. I order from the supplier’s website and pay with PayPal, a Cash Account. After doing an Import Bank Statement, that transaction appears as a Spend Money Payment in which the supplier shows as the Payee.
After using a supplier credit on a subsequent purchase, I noticed that the Payment transaction in Manager doesn’t show the Debit Note balance under Assets - only Accounts Receivable. However, I have found a way to use up the Debit Note amount so the transaction in Manager reflects my invoice.
On a subsequent purchase, I add a line to the Payment transaction, select Accounts Payable, the supplier’s name and enter my supplier credit as a negative amount. That amount will offset the Debit Note amount. I’m open to suggestions if there’s a better way to do this.