Dealing with a supplier credit note


I’m new to accounting systems.

I have received a credit note from a supplier. Since then we’ve received two more invoices which are to be paid with the credit note. The credit note is for a larger amount than the sum of the invoices.

e.g. Credit note $5000
Invoice 1 $2000
Invoice 2 $1000

How can I correctly enter into ERPNext that Invoice 1 and 2 are paid, but from the credit note, not from a bank account?

I’ve entered the Credit note as a Purchase Invoice with the
Is Return check marked. Is this correct?

Have I fundamentally misunderstood something here?

Can someone walk me through the process of receiving a credit note and offsetting that against subsequent invoices?

You could add the credit note via a Journal Entry. Then reconcile the journal entry against both of the invoices. Marking the two invoices as paid, while the remaining amount remains as credit in the supplier account.