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      How do Credits work?

      Credits are notes issued to Clients for when you need to owe a service to be provided at a future date to your Clients. These include Prepayment and Overpayment Credits which can then be applied to future Invoices.
       

       

      Prepayment Credits

      Prepayment Credits are created when a Client voluntarily pays for the product or service ahead of time. If you’re looking to require payment upfront before starting work at a future date, you can use Deposits instead. Create a Prepayment Credit with the below steps:

      Prepayment credit screen with details to fill out.

      1. Click on either:
        1. The Dashboard section
          1. Then click on the Create New... button
          2. Select Credit
        2. The Clients section
          1. Then click on a Client
          2. Click on the Create New… button
          3. Select Credit
      2. On the Prepayment Credit screen, if a Client isn’t selected, click on Add a Client and choose a Client
      3. Under Settings, click on Currency to change the currency if needed and click Done to apply
      4. Click on Date of Issue to change the date if needed
      5. To edit the Credit Number, click on it and type the new number
      6. Next, click on Add a Line and add Items and/or Services with the Quantity as needed
      7. When finished, click on Save to create the Credit, or click on Send… to email the Prepayment Credit to your Client. 

       

      Overpayment Credits

      Overpayment Credits are created when a manual payment greater than the Invoice total is entered by you or by the client. 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. Click Add Payment to finish.

      View, Edit and Delete Credits

      All Prepayment and Overpayment Credits can be viewed in each Client’s profile in several places:

      • In viewing the list of Clients, the Credit column indicates any unused Credits
        List of clients with credit balance column.
      • In a Client’s Profile, the Available Credit area underneath the Outstanding Revenue graph indicates the grand total - hover over to see a breakdown
        Client profile showing available credit widget.
      • In a Client’s Profile, the Credits sub-tab will list all Credits created for this Client
        Client profile showing a sub-tab called Credits with a list of credits.

       

      Edit Credits

      To edit a credit, use the below steps:

      1. Click on the Clients section
      2. Then click on the Client whose Credit(s) you want to delete
      3. Next, click on the Credits sub-tab
      4. Click on the credit you want to edit
      5. Then click on the Edit button
      6. Modify the credit as needed and click Save or Send… to finish.


      Notes:

      • Credits can only be edited as long as the new amount does not cause the Credit Balance to go below zero (resulting in a negative balance)
      • If a particular Credit has been used in full, it will not be editable
      • Only the amount can be edited for an Overpayment Credit


      Delete Credits

      To delete a credit, use the below steps (note that once a Credit is deleted, it cannot be undeleted):

      1. Click on the Clients section
      2. Then click on the Client whose Credit(s) you want to delete
      3. Next, click on the Credits sub-tab
      4. Check the box(es) off next to the Credit(s) you want to delete
      5. Click on the Bulk Actions button
      6. Then click on Delete
      7. Confirm you want to proceed by clicking on the Delete Credit button and the Credit will be removed.


      Apply Credit as Payment

      Note: Credits can only be applied to regular Invoices for now (not to Invoices generated by Recurring Templates).

      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.

       

      FAQs

      Why can’t I apply Sales Tax to my Credits?

      Sales Tax is only applied to an Invoice when a product or service has been provided. With Prepayment and Overpayment Credits, a service has not yet been provided, so Sales Tax is not applicable.

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