If you have a customer that overpaid for an invoice or wants to pay in advance for services, there are two ways to handle this. You can add a credit to the account on the Update Customer screen by following the steps below, or you can add a Batch Credit using the step-by-step instructions found at the bottom of the following article: Add Bulk Payments



Add Credit on the Update Customer Screen


Step 1: Access the customer account from the "Customers" tab.


Step 2: Click on "Add Credit" at the top of the page.



Step 3: Enter the amount of the credit and the payment type. Then click "Submit"


If the option "Check" or "Other" are selected there will be a "Payment Info:" field available to enter the check number or additional info about the payment. 


After adding a credit the following will happen:


- The credit will be applied to any unpaid, sent invoice(s) until the credit is completely used.

- The credit will show on the customer statement and the credit report.

- The credit will automatically be applied to any newly sent invoice until it is completely used.

- Any unused credits will show on the Customer Profile screen as an "Available Credit" balance


NOTE:

- Credits are NOT included in revenue numbers until they are applied to invoices.


How to Adjust Available Credit


To update a customer's credit balance, follow these steps:

  • Navigate to the specific customer record you wish to update.
  • Find the Available Credit field at the top of the page.
  • Click the pencil icon located directly next to the credit amount.
  • Enter the new credit amount.
  • Click the submit button to confirm the adjustment and update the balance.


Critical Rules & Logic


1. Credit Adjustment Entries


When you save a new credit amount, the system doesn't just "overwrite" the number. It calculates the difference between the old balance and the new balance and creates a Credit Adjustment Entry.

  • Example: If a customer has $50 in credit and you change it to $75, the system logs a +$25 adjustment with a payment type of Cash.


2. Negative Balance Protection


To prevent accounting errors, the system will not allow a credit balance to be adjusted to a negative amount.

  • The minimum allowable value for the credit field is $0.00.

  • If you attempt to enter a negative number, the system will prevent the save and prompt you to enter a valid amount.


Common Use Cases

  • Correcting Errors: Quickly fixing a data entry mistake from a previous transaction.

  • Legacy Data Cleanup: Aligning credit balances during a transition from an older system.


Note: Because every adjustment creates a ledger entry, you can always review who changed a credit balance and when by viewing the Credit Report.