Creating a Credit

What do you do when you need to give your customer a discount on a certain invoice, or they've paid you cash that you spent instead of put into your business' account? You create a credit on their account to show that these funds were received; and luckily this process is very straightforward!

 

In order to create a credit for a customer, please follow these steps:

 

  1. Go to Cash In > Credits, which will take you to the All Credits page. To learn more about the All Credits page, please click here. 
  2. Once you have navigated to this page, click on either the [Manage Credits] button or Related Link to take you to the Manage Credits page.
  3.  The Manage Credits tool will allow you to create a credit on a customer's account and then apply that credit against an invoice of your (or the customer's) choosing. We'll only be covering the creation of credits in this article, but you can click here to review the application of credits.
  4. In the first step of this process, you will need to select your credit type and the reporting category you would like that credit coded to. Remember, reporting categories determine where that credit will hit your budget.
  5. We will be breaking out the credit creation into two sections, based on how you create said credits. 

Offline Payments/Payment Discount/Previously Collected Funds

  1. On the second step of the credit creation process for the 'Offline Payments', 'Payment Discount', and 'Previously Collected Funds' credit types, you will need to enter in the credit's dollar amount, some notes as to why the credit is being created, and select the customer(s) to credit. Once you have done these things, click the 'Continue' button.
  2. Next you will be taken to a summary page to review the customer(s) to be credited, and the amount to be credited to each of their accounts. Please keep in mind that if you are selecting multiple customers to credit, EACH customer will receive a credit for the amount entered in the previous step. After you have reviewed this information to be correct, you can click the [Submit] button to finish creating the credit!

A/R Write-Off

  1. The A/R Write-Off credit is different than the other three credit types in how it can be applied, so the creation process is also a bit different. This credit type is the only credit that can be directly applied against fees that were not created by your business. For example, if a customer accidentally entered in incorrect payment information for an online ACH payment and it was bounced, he or she would be charged a bank return fee for that return. If you wanted to cover that fee for the customer, you could choose to write it off with this credit type. The only caveat to this writing off would be that your business would be out the amount of the credit, since the financial institution would be getting reimbursed for the fee. 
  2. Second, you will need to enter notes as to why this credit is being issued, and then select a customer to credit along with an invoice type. You don't have to select a specific customer or invoice type if you are crediting many customers in this fashion, but if you have a large amount of invoices, choosing one of these options to filter by will help narrow down this list tremendously. 
  3. After you have done these things, a list will then populate with all unpaid invoices/fees for the customer you have chosen. 
  4. You will then individually select the invoices/fees that you are crediting. Once you are done selecting customer(s) and their invoices, click the [Continue] button to advance. 
  5. The final page will show the total dollar amount to be credited, as well as the customer(s) to be credited. If everything is correct, you can click the [Submit] button to apply those credits directly against the selected invoices.

The difference between these two methods is that A/R Write-Off credits are automatically and immediately applied against the invoices that you selected during the credit creation process. This is because they can be applied against fees that would immediately pull funds from your business, we want you to be 100% sure that you are selecting the proper invoice or fee. Don't worry, credits can always be cancelled, just like invoices!

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