View All

      How do Credits work?

      Credits are a great way to track payments received from Clients that have not been applied yet. You can apply this Credit towards existing and new invoices for payment in a few quick clicks.

      Our Product team is currently working on building more functionality with Credits. The ability to add and edit Credits will be coming out soon. Keep an eye out for it on our 2020: Updates to FreshBooks page.


      Add Credit

      A Credit is only created when a manual payment greater than the Invoice total is entered by you. This automatically creates an overpayment Credit associated with that Client.

      1. Go to the Invoices section
      2. Click on an Invoice that is associated with the Client you want to create a Credit for
      3. Click on the More Actions button
      4. Select Add a Payment
      5. Add the amount you want to overpay (if the Invoice is still outstanding, add that to the total as well)Add payment button.
      6. A pop-up will let you know how much in Credit will be created for this ClientOverpayment notification.
      7. ClickAdd Payment to finish.

      View Credit Balances

      To view a Client's Credit balance, you can go to the Client section. Any available Credit will be shown in the Credit column:
      Credit balance view on list of clients.

      Click on a Client's profile, and you'll see the total available credit. Hover over it to get a detailed breakdown of where the credit came from.
      Client profile showing available credit balance.

      Apply Credit as Payment

      1. Go to the Invoices section
      2. Click on an Invoice you want to pay with the Client's Credit balance
      3. Click on the More Actions button
      4. Select Add a Payment
      5. If there is Credit available, it will automatically be selected for youApply credit as a payment.
      6. If the Credit does not cover the full Invoice total, you can make separate partial payments manually after using the full Credit balance
      7. Add Payment Notes if needed and click Add Payment to finish.

      Delete Credit

      If you've accidentally created an overpayment or a Credit, or you no longer want a Credit balance for your Client, you can delete it with these steps:

      1. Go to the Clients section
      2. Click on the Client with the Credit balance you'd like to delete
      3. Hover over the available credit section until you see a pop-up
      4. Click on the trash can icon next to the overpayment you want to deletePop-up showing available credit and option to delete.
      5. Click OKto confirm and the credit will be deleted permanently. Delete credit confirmation pop-up.

      Note that if part of the Credit has already been applied to an Invoice, you'll need to delete the credit as payment first before you can delete the entire credit itself.

      Support Categories