# Apply credit to an invoice

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

Source: https://docs.moodiri.com/invoices/apply-client-credit-to-an-invoice

## 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](https://docs.moodiri.com/financials/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](https://docs.moodiri.com/invoices/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

1. Open the client's invoice and, in **Actions**, choose **Apply overpayment**.
2. If the client has more than one credit, choose one under **Available credit**.
3. Enter the **Amount to apply**. Below it you see what is still outstanding on the invoice.
4. 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

- 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](https://docs.moodiri.com/invoices/overpayments-and-client-credit#reverse-a-credit-application).