Billing: Manage Client Credits/Discounts

Clients may have a credit balance due to overpayments or a discount adjustment made by the firm. Credits remain on the client account and can be applied to future invoices. 

Option 1: Add a Credit to the Client Account for Future Invoices

Option 2: Cancel the existing invoice and recreate it with the Client Credit/Discount

Add a Credit to a Client Account

Use this method when a client has overpaid or when you need to apply a credit. 

1. Navigate to the Billing Screen for a Select Client or to the Billing Dashboard

2. Add a new line item with a negative amount

3. Do not generate an invoice

4. Save your changes

The credit will remain on the client account and can be applied to future invoices.

Apply a Credit to an Invoice

Use this method to apply an existing credit to an open invoice.

1. Navigate to the Billing Dashboard

2. Select the client invoice

3. Apply the available credit to the invoice

4. Review the updated balance

5. Save or finalize the invoice

The invoice total will be reduced by the applied credit.

If the credit and the new billable work are equal, you can generate a $0 invoice to send the client for their records.

Important

• Credits remain in WIP until invoiced

• Credits reduce invoice balances but do not generate payments

• Do not create an invoice when adding a credit for future use

 

Apply a Negative Invoice to Another Invoice

In some cases, a negative invoice may have been created to show the account credit or discount. If needed, you can apply this balance to another invoice.

Note: This is not the recommended workflow. When possible, cancel the existing invoice and recreate with the discount or enter a client credit amount and save for future invoices.

Steps

1. Navigate the negative invoice

2. Click Action > Record Payment

1. Select Adjustment as the payment type

2. Enter the full negative amount and save

3. Open the positive invoice

4. Click Action > Record Payment

5. Select Adjustment as the payment type

6. Enter the corresponding amount and save

If the invoice amounts are equal, both invoices will be marked as Paid.

If the amounts are different, the remaining balance can be invoiced or collected as needed.

Important

• This workflow is intended for correcting existing billing scenarios

• For future transactions, it is recommended to use client credits instead of negative invoices

Related

If the client should receive funds back instead of a credit, see Billing: Issue Client Refunds.