Account credit is money held on a customer's account that you can apply to their invoices. A common use is goodwill when something went wrong on a job, for example: "We missed an area, so here's a $25 credit toward your next invoice."
Good to know:
Prepayments are not done with credit. Record them as cash, check, or card payments.
Overpayments turn into credit automatically. If a customer pays $100 on a $50 invoice, the extra $50 becomes account credit. It is not applied automatically, so you need to apply it to an invoice.
Credit can only be added or removed from the customer's account, not from an invoice.
Add or remove credit
Open the customer's account.
Open the credit window in one of two ways:
Click Actions > Adjust Credit, or
In the right-side menu, go to Billing Information > Payment Accounts and click the gear icon next to Account credit.
In the Adjust Account Credit window, choose the Operation Type (Add or Remove).
Enter the Amount.
Add a Description explaining the reason.
Click Process.
The account's Credit amount updates right away.
Note: Adding credit doesn't lower the customer's balance until you apply it to an invoice.
Apply credit to an invoice (recommended)
From the customer's account, click Receive Money on the right side.
The top of the pop-up shows how much account credit is available.
Check the invoice you want to pay.
Change Method to Account credit.
Check the Amount. It fills in the full amount owed, so if the credit is less, enter the credit amount.
Click Process Payment.
The balance drops and the credit is used up.
Other places to apply credit
Per-service jobs: In the right-side menu, go to History > Services. On the invoice, click Action > Payment Details, then add a payment with the type Account Credit.
Miscellaneous invoices (monthly or installment invoices not tied to a service): use Upcoming Invoices.
Financial > Unpaid Invoices: From the main menu, go to Financial > Unpaid Invoices and submit the filter to see results.