Understanding Credits in Masava
For: Sales Representatives, Office Staff, Administrators
Overview
Credits in Masava are amounts owed to customers that can reduce their invoice balances. Understanding how credits work is essential for properly managing customer accounts and ensuring accurate financial records.
What You'll Learn
What credits are and how they differ from payments
Types of credits and where they come from
Credit lifecycle from creation to application
How credits sync with QuickBooks
Best practices for managing credits
Credit vs Payment Distinction
Credit:
Amount owed to the customer by your organization
Created from returns, adjustments, overpayments, or promotions
Reduces invoice balance without money changing hands
In QuickBooks: Credit Memos or Account Credits
Payment:
Money received from the customer
Actual funds deposited in your bank account
Recorded as payment transactions
In QuickBooks: Payment records
Example:
Credit scenario: Customer returns $200 of damaged product → $200 credit applied to their account
Payment scenario: Customer sends $800 check → $800 payment recorded against invoice
Credit Lifecycle
Credits move through several stages from creation to full use:
1. Created
Credit is generated (return, adjustment, etc.)
Amount and reason documented
Synced to QuickBooks as Credit Memo
2. Available
Credit exists in customer account
Visible in customer's available credits
Ready to be applied to invoices
Can be viewed by sales reps and customers
3. Applied (Partially or Fully)
Credit applied to one or more delivered invoices
Reduces invoice balance
Credit amount decreases
Transaction recorded in invoice history
4. Fully Used
Entire credit amount has been applied
No longer shows in available credits
Visible in credit history for reference
Cannot be reused
5. Expired (Optional)
If expiration date was set (promotional credits)
Credit becomes unavailable after date
May require administrator approval to extend
Types of Credits
Credit Memos (Most Common)
Created for:
Product returns and exchanges
Damaged or defective goods
Pricing errors or adjustments
Overcharges on previous invoices
Service failures or compensation
How they're created:
Issued by administrative staff in Masava
Generated automatically from return processing
Created in QuickBooks and synced to Masava
Characteristics:
Permanent record in accounting system
Specific reference numbers (CM-XXXXX)
Usually applied to specific invoices
Sync bidirectionally with QuickBooks
Example:
Overpayments
Created when:
Customer pays more than invoice amount
Duplicate payment received
Payment applied incorrectly then corrected
Rounding differences accumulate
How they're created:
System automatically creates credit from excess payment
Or manually created when overpayment identified
Overpayment amount becomes available credit
Characteristics:
Typically smaller amounts
May be returned to customer if requested
Often applied to next invoice
Customer may not be aware of overpayment
Example:
Promotional Credits
Created for:
Marketing promotions and campaigns
Customer loyalty programs
New customer incentives
Seasonal sales events
Compensation for service issues
How they're created:
Manually created by administrators
May have expiration dates
Often tied to minimum purchase amounts
Tracked separately for marketing analysis
Characteristics:
Usually have expiration dates
May have usage restrictions
Often round amounts ($25, $50, $100)
Require customer communication
Example:
Imported Credits
Created from:
QuickBooks Desktop migration to Masava
Historical credits from previous system
Bulk credit imports from accounting
Transition credits from system changes
Characteristics:
May be older transactions
Reference numbers from previous system
Usually already partially or fully applied
Important for customer account accuracy
Special Considerations:
Credits applied in QuickBooks before Masava connection may not auto-sync
Historical unapplied credits should be imported during setup
May require manual verification against QuickBooks
→ May be missing if there were import issues
If credits are missing after migration:
Check QuickBooks for unapplied Credit Memos
Verify import date range included these credits
Contact administrator about historical credit import
May need manual credit entry for pre-migration credits
How Credits Are Created
Creating a Credit Manually
Step 1: Navigate to Customer Account
Go to Customers → Select customer
Or search for customer by name/ID
Step 2: Click "Add Credit" or "Create Credit Memo"
Button typically in customer account header or actions menu
Step 3: Enter Credit Details
Required Information:
Credit Amount - Dollar value of credit
Credit Type/Reason - Why credit is being issued:
Product Return
Damaged Goods
Pricing Adjustment
Overpayment
Promotional Credit
Other (with explanation)
Reference Number - For tracking (auto-generated or manual)
Date - When credit was issued
Optional Information:
Expiration Date - For promotional credits
Related Invoice - If crediting specific invoice
Internal Notes - For staff reference
Customer-Facing Notes - Visible to customer
Step 4: Save Credit
Review all details
Click "Save" or "Create Credit"
Credit immediately available in customer account
Syncs to QuickBooks within minutes
Credits from Returns
Automated Process:
Customer returns product
Staff processes return in Masava
Return generates credit automatically
Credit amount = returned product value
Credit available immediately
Manual Process:
Staff receives returned goods
Verifies return is valid
Creates credit memo for return value
Applies credit to customer account
Processes refund or leaves as credit
Related Documentation:
→ Returns and Credits Processing (for detailed return workflows)
→ Product Returns Policy
Credits from QuickBooks
Automatic Sync Process:
Accountant creates Credit Memo in QuickBooks
Credit Memo syncs to Masava within 5-15 minutes
Credit appears in customer's available credits
Customer and sales reps can see credit
Credit ready to apply to invoices
What Syncs:
Credit amount
Credit date
Reference/memo number
Customer association
Applied/unapplied status
What May Not Sync:
Credits applied before Masava connection
Credits for customers not yet in Masava
Deleted or voided credit memos
Credits with mapping errors
Troubleshooting Sync:
Verify QuickBooks integration is active
Check customer name matches in both systems
Review integration push log for errors
→ See QuickBooks: Troubleshooting Sync Issues
Viewing Available Credits
In Customer Account
Navigate to customer account:
Go to Customers menu
Select customer or search by name
Click "Credits" tab or section
Available Credits Display:
List of all available (unapplied) credits
Each credit shows:
Credit amount
Credit source/reason
Creation date
Reference number
Expiration date (if any)
Available balance (if partially applied)
Total available credit balance at top
Example Display:
During Order Creation
When creating or viewing orders:
Available credits automatically shown
Displayed in sidebar or totals section
"Available Credits: $XXX.XX" label
Click to view credit details
Option to preview credits on invoice
Pre-Delivery (Confirmed/Fulfilled Orders):
Credits shown as preview only
Cannot actually apply until delivered
Helps customer understand final amount
→ See Viewing and Applying Credits for details
Post-Delivery:
Credits can be actually applied
Reduces invoice balance immediately
Syncs to QuickBooks as applied Credit Memo
Credit Status Types
Available
What it means: Credit exists and can be used
Where it shows: Customer available credits list
Actions possible: Apply to invoices, view details
In QuickBooks: Unapplied Credit Memo
Partially Applied
What it means: Some credit used, amount remaining
Example: $100 credit, $40 applied, $60 still available
Where it shows: Available credits (with remaining balance)
Actions possible: Apply remainder to other invoices
In QuickBooks: Partially applied Credit Memo
Fully Applied
What it means: Entire credit amount used
Where it shows: Credit history (not available credits)
Actions possible: View history only, cannot reuse
In QuickBooks: Fully applied Credit Memo
Expired
What it means: Credit passed expiration date
When this happens: Promotional credits with expiration
Where it shows: Expired credits section (if shown)
Actions possible: May require admin approval to extend
In QuickBooks: May still show as unapplied (depends on policy)
Voided/Deleted
What it means: Credit was cancelled or reversed
When this happens: Error correction, return reversal
Where it shows: May not show at all, or in audit log
Actions possible: None, credit no longer exists
In QuickBooks: Voided Credit Memo
Credits and QuickBooks Integration
How Credits Sync
Masava → QuickBooks:
Credit created in Masava
Syncs to QB as Credit Memo within 5-15 minutes
Customer association maintained
Reference numbers preserved
QuickBooks → Masava:
Credit Memo created in QB
Syncs to Masava as available credit
Shows in customer account
Ready to apply to invoices
Credit Application Sync:
Credit applied to invoice in Masava
QB Credit Memo applied to QB Invoice
Both systems show same balance
Bidirectional sync maintained
What Syncs Automatically
✅ Syncs:
New Credit Memos
Credit amounts
Customer associations
Reference/memo numbers
Applied status
Applied amounts
❌ May Not Sync:
Credits applied before Masava connection
Credits for unmapped customers
Deleted/voided credits
Custom credit fields
Internal notes (some systems)
Timing Expectations
Normal sync time: 5-15 minutes
Most credits sync within 10 minutes
Don't create duplicate credits if waiting
Check integration status if longer
Immediate actions needed:
Creating credit: Works immediately in Masava
Applying credit: Updates Masava balance immediately
QuickBooks update: Follows within sync window
Best Practices
Creating Credits
✅ Always add clear, detailed notes
Explain reason for credit
Reference original invoice if applicable
Note who approved credit
Document customer communication
✅ Use consistent reference numbers
Follow organization's numbering system
Include credit type in reference (CM = Credit Memo)
Makes tracking and reconciliation easier
✅ Set expiration dates for promotional credits
Prevents indefinite liability
Encourages customer purchases
Typical: 30, 60, or 90 days
✅ Verify credit amount is correct
Double-check calculations
Match to return value or adjustment
Ensure QuickBooks amount matches
Managing Credits
✅ Communicate credit availability to customers
Notify when credit is issued
Remind of expiration dates
Show available credits on invoices
✅ Apply credits promptly
Don't let credits sit unused
Apply to next invoice automatically (if policy)
Reduces customer confusion
✅ Review credit balances regularly
Check for old, unused credits
Follow up on large credit balances
Investigate negative credit balances (errors)
✅ Reconcile with QuickBooks monthly
Verify credit amounts match
Check for sync errors
Resolve discrepancies promptly
Avoiding Issues
⚠️ Don't confuse credits with payments
Credits: Money owed to customer
Payments: Money received from customer
Different accounting treatment
⚠️ Don't create duplicate credits
Check if credit already exists
Verify QuickBooks hasn't already synced
Search by amount and date
⚠️ Don't apply credits before delivery
Credits technically apply in QB after delivery
Use credit preview for pre-delivery amounts
Actual application happens post-delivery
💡 Tip: Use standardized credit reasons
Maintains consistency
Easier reporting and analysis
Helps with auditing
💡 Tip: Track promotional credit ROI
Monitor redemption rates
Measure impact on sales
Adjust campaigns based on data
Common Scenarios
Scenario 1: Product Return with Credit
Situation: Customer returns $150 of product due to damage
Steps:
Process return in Masava
System creates $150 credit automatically
Credit syncs to QuickBooks
Customer notified of $150 available credit
Credit shows on customer account
Apply credit to next invoice
Result: Customer has $150 credit to use on future purchases
Scenario 2: Overpayment
Situation: Customer pays $1,000 but invoice was only $975
Steps:
Record $1,000 payment on invoice
Invoice fully paid with $25 excess
Create $25 credit for overpayment
Credit available for next invoice
Or refund $25 if customer requests
Result: $25 credit available or refunded
Scenario 3: Promotional Credit
Situation: New customer promotion: $50 credit on first order over $500
Steps:
Customer places qualifying order
After delivery, create $50 promotional credit
Set 90-day expiration
Notify customer of credit
Customer uses on next order
Credit applied at checkout
Result: Customer saves $50 on second order, increasing retention
Scenario 4: Pricing Adjustment
Situation: Customer charged wrong price, owed $75 credit
Steps:
Identify pricing error
Create $75 credit memo
Add note: "Price adjustment - Invoice 136045"
Credit syncs to QuickBooks
Apply credit to current invoice or next order
Notify customer of adjustment
Result: Customer receives correct pricing retroactively
Related Documentation
Credit Management
Viewing and Applying Credits - How to apply credits to invoices
Credits on Invoices - How credits display on printed invoices
Credit Troubleshooting - Solving credit issues
Related Topics
Recording Individual Payments - Payment vs Credit distinction
QuickBooks: Understanding the Sync Process - How credits sync
Returns and Credits Processing - Processing product returns
QuickBooks Integration
Need Help?
For credit creation issues:
Check user permissions for creating credits
Verify customer account is active
Contact administrator if issues persist
For missing credits:
Check Credit Troubleshooting
Review QuickBooks sync status
Contact support for historical credit import issues
For applying credits:
Ensure order is in Delivered status
Verify credit belongs to correct customer
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