Apply credit to an invoice

Use money a client already paid you, such as an overpayment, to reduce or settle one of their invoices.

Why use it

When a client has money sitting with you, asking them to pay the next invoice in full is awkward. Applying the credit lowers what they owe, records where the money came from, and keeps the credit balance correct.

When to use it

The client overpaid an earlier invoice. Apply the extra to the next one.
The client paid in advance. Apply the advance when you invoice.
Items were refunded as client credit. Use it on the next order.

For a retainer, use Apply a retainer to an invoice instead. Retainers are separate from client credit.

Before you start

Only the owner and admins can apply credit.
The client needs available credit. See Overpayments and client credit.
The invoice must be a draft, or sent, viewed or overdue, with a balance due.
Open the invoice from Invoices.

Steps

Open the client's invoice and, in Actions, choose Apply overpayment.
If the client has more than one credit, choose one under Available credit.
Enter the Amount to apply. Below it you see what is still outstanding on the invoice.
Choose Apply to use the credit.

What happens next

The invoice shows Overpayment credit applied and a lower Amount due.
If the credit covers the balance, the invoice is marked Paid.
The credit's remaining balance drops on Financials, and the application appears under Credit applications.

Limits

Limits

The amount can't be more than the credit available or the invoice's outstanding balance.
Apply overpayment is unavailable on an invoice with no outstanding balance.

Questions

Does my client get a "you paid" email?

No. Applying credit uses money they already paid, so Moodiri doesn't send a payment confirmation. If it settles the invoice, you can choose Send paid invoice.

I applied the wrong amount. Can I undo it?

Yes. Choose Correct payment… on the invoice and pick the client credit, or reverse it from Credit applications on Financials. See Reverse a credit application.