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Customer credit and refunds

A family has KES 2,000 of available credit after a billing correction. The bursar can apply it to another eligible invoice or record an authorized refund. These choices have different accounting evidence and should not be represented by a manual “paid” status.

On this pageReview available creditApply to an invoiceRecord an actual refundCorrect a settlementContinue with

Review available credit

  1. Open Accounting > Invoicing > Collections and find the customer-credit records.
  2. Check the customer, currency, source and available amount. Review settlement history if part of the credit has already been used.
The Collections workspace also provides customer-credit and settlement views below the notice workflow.

Apply to an invoice

  1. Choose Apply to invoice on the available credit.
  2. Select the eligible target invoice and enter the amount and posting date.
  3. Check that the allocation does not exceed the remaining credit or the invoice’s outstanding amount. Confirm the settlement.
  4. Review the remaining credit and target invoice balance. The invoice’s original issued total remains unchanged.

Record an actual refund

  1. Arrange the approved refund through your payment process and retain its evidence.
  2. Choose Record refund on the credit. Enter the amount, date, bank or cash account and payment reference.
  3. Review the exchange rate and gain/loss account when the workflow requires currency conversion. Confirm the recorded settlement.

Correct a settlement

Use the settlement’s View journal action to inspect its accounting evidence. If a recorded settlement is wrong, use Reverse settlement with a reason and an eligible date. Refresh the available balance before making a replacement allocation; do not create a duplicate refund.

Issue a credit noteMatch the bank evidence