How to apply a credit to an Invoice
There may be an occasion where an Invoice has a credit remaining against it (more money applied against an Invoice than is actually owing). There are two common scenarios for this:
- An Invoice has been raised and fully paid, however a discount or adjustment has then been made against that Invoice, leaving the Invoice in credit.
- An Invoice has been simply over paid.
When this happens, you may wish to apply that credit to another outstanding invoice. The below document describes the process.
In the below scenario we have two invoices
- Invoice 6 for $308
- Invoice 7 for $1040
There has also been a receipt (Rec7) against Invoice 6 for $308 (Paid in full)
However, now an adjustment has then been made against Invoice 6 for -$50. This has left Invoice 6 with a $50 credit.
Applying the credit to another Invoice
We now would like to use that $50 Credit to apply against the un-paid ‘Invoice 7’
1. Select 'Apply Credit to Invoice'
Go to the Accounts tab => Office Account tab, select the More button, then select Apply Credit to Invoice.
The Apply to Invoice screen will appear. You will see a list of Outstanding Invoices for this Matter (1) as well as the available Credit Balance showing at the bottom left of the Window (2).
2. Apply the Credit to Outstanding Invoice
1. Enter the amount of credit you would like to apply in the Total Amount field.
2. Enter the amount for the Invoice/s you would like to apply the credit against in the Apply field.
3. Then click Save & Close.
Two additional lines will have been added to the Office Account tab:
- The Credit will be taken from Invoice 6
- The Credit will be applied against Invoice 7