Credits for Customers
There are a number of different ways to apply credits for customers, depending on your setup. Each has their advantages/disadvantages. Choose which best suits your business requirements, detailed information on how to use them is listed below
Different Credit Types
Simple Credit Payment Type
This is by far the most simplistic and easy to use. There is an inbuilt payment type called “credit” and you apply a payment against an invoice for the credit amount required. This method suits small and flexible businesses, who don’t require an approval process and want to apply credits “on the fly”
Credits as “Misc Charges”
When you have requirements around wanting to track what items/products are credited back and apply them to the next customer’s invoice, then this is the one for you. It allows for credits to be input as negative misc charges in customers or against services.
Credit Notes
This is a more classic accounting style, of raising a credit note for a customer, with multiple products/line items. This requires an approval process and then applies the credit to the next invoice similar to above. It can allow for a customer dispute to be raised, with the amounts ready to be approved, however not allocated until finance team is ready to approve them.