Credits, put simply, are invoices with a negative amount - statements about money you have to pay to someone else. Think of a marketplace scenario: You sell products that are delivered by a participating organization. You receive the customer's money, but you have to pay out the fulfiller. Other examples for credits include refunds or overpayments.
As invoices do, credits have different statuses according to the business requirements.
- Draft: Like usual invoices, new credits have the status
- Open: After finalization, a credit becomes
Openand due to be settled.
- Settled: Once the corresponding payments are refunded or you have generated a new invoice that outweighs the credit amount for the account, the credit is set
To issue a credit, you create a new invoice with a negative payment amount. There are two ways to do so:
- Manually creating a new invoice that contains invoice line items that yield a negative invoice balance, or
- Creating a (partial) credit for an existing invoice (in the status
Paid) you want to reverse - this option lets you select the corresponding items and payments to be done.
Make sure that the button Create Credit is available on the invoice detail view, see Enabling Credit Creation for Single Invoices.
To individually create a credit based on a single invoice in the status
- Navigate to the Invoices list in the invoice run view or open the Invoices tab.
- Click the invoice ID to open the invoice's detail view.
- Click Create Credit.
- Select the intended item and specify the quantity and/or the amount to be credited.
This creates a new draft invoice of the class
Creditand links it to the original invoice, which is displayed in the field