Viewing and Applying Credits
For: Sales Representatives, Office Staff, Administrators
Overview
Applying credits to invoices reduces customer balances and ensures accurate accounting. This guide covers how to view available credits and apply them to invoices, with special focus on showing credits to customers before delivery so they understand their final payment amount.
What You'll Learn
How to find and view available credits
Showing credits on pre-delivery invoices (credit preview)
Applying credits to delivered invoices (actual application)
Combining multiple credits
Using credits with payments
Best practices for credit application
The Credit Application Challenge
Real Customer Request (Tramonte & Sons):
"Tramonte has requested that invoices include a section showing the account's available credits and the updated total if those credits are applied. Since credits can't be applied until after delivery, customers currently can't see what their final payment would be, creating confusion about how much to pay."
The Solution: Masava provides two approaches:
Credit Preview on pre-delivery invoices (shows what customer will owe)
Credit Application after delivery (actually reduces balance)
Understanding: Showing vs Applying Credits
Credit Preview (Pre-Delivery)
When: Order in Confirmed or Fulfilled status
Purpose: Show customer final amount before delivery
Effect: Display only - does not reduce balance yet
QuickBooks: No sync until actual application
Benefit: Customer knows exact payment amount
Credit Application (Post-Delivery)
When: Order in Delivered status
Purpose: Actually reduce invoice balance
Effect: Balance reduced, credit marked as used
QuickBooks: Credit Memo applied to Invoice
Benefit: Accurate accounting and customer balance
Key Distinction:
Finding Available Credits
For a Specific Customer
Step 1: Navigate to Customer Account
Go to Customers in main navigation
Search for customer by name or ID
Click on customer name to open account
Step 2: View Credits Tab
Click "Credits" tab in customer account
View list of all available credits
What You'll See:
Total Available Credits at top
List of individual credits showing:
Credit amount
Credit source/reason
Issue date
Reference number
Expiration date (if any)
Available balance (full or partial)
Filter options (All, Available, Applied, Expired)
Example Credits Display:
During Order Creation
When creating or viewing an order:
Available credits automatically displayed
Shown in sidebar or order summary section
Format: "Available Credits: $XXX.XX"
Click amount to expand credit details
Benefits:
Sales reps know credit availability during order creation
Can discuss credit application with customer
Can preview final amount before confirming order
Showing Credits on Pre-Delivery Invoices (Credit Preview)
This solves the Tramonte pain point: customers need to know final amount before delivery.
Why This Matters
The Problem:
Credits can only be applied in QuickBooks after delivery
Customers receive invoices before delivery
Invoices show full amount without credits
Customers don't know actual payment due
Results in: Overpayments, underpayments, confusion, support calls
The Solution:
Show available credits as preview on pre-delivery invoices
Display "Estimated Final Payment" amount
Clearly label as "Credits will be applied after delivery"
Customer sees accurate amount to pay
Step 1: Create or Open Confirmed Order
For new orders:
Create order as usual
Add products and calculate total
Confirm order (status: Confirmed)
For existing orders:
Navigate to Orders
Filter by status: Confirmed or Fulfilled
Open order detail page
Order shows standard totals:
Subtotal: $1,247.53
Tax: $87.33
Order Total: $1,334.86
Step 2: Add Credit Preview to Invoice
Click "Show Available Credits" or "Preview Credits"
Button location: Near order totals or in actions menu
May also be labeled "+ Add Credit Preview"
Opens credit selection modal
Step 3: Select Credits to Preview
Credit Selection Modal shows:
List of customer's available credits
Checkbox for each credit
Credit details: amount, reason, date
Select credits to preview:
Check box next to credits you want to show
Can select one or multiple credits
Click "Preview on Invoice"
Example Selection:
Step 4: Review Totals with Credit Preview
Order totals section now displays:
Important: This is a preview only. Credits not actually applied yet.
Step 5: Print Invoice with Credit Preview
When invoice is printed:
Full order total shown
"Available Credits" section included
Each credit listed separately
"Estimated Final Payment" clearly displayed
Label states: "Credits will be applied after delivery"
Example Printed Invoice:
Customer Benefits:
✅ Knows exact amount to prepare for payment
✅ Can verify credit amounts before paying
✅ Reduces confusion and support calls
✅ Fewer overpayments/underpayments
Important Notes About Credit Preview
⚠️ Credit Preview is display-only:
Credits are NOT actually applied yet
Invoice balance still shows full amount in system
QuickBooks does not sync preview credits
Actual application happens after delivery (next section)
⚠️ Order must be delivered to apply:
Preview shows intent, not action
Credits technically apply in QuickBooks after delivery
This is accounting best practice
✅ Preview accurately reflects final amount:
Shows customer what they will actually owe
Prevents payment confusion
Improves customer experience
Applying Credits to Delivered Invoices (Actual Application)
After order is delivered, credits can be actually applied to reduce balance.
Prerequisites
Order status: Delivered
Credits available for customer
Credits not expired
User has permission to apply credits
Step 1: Navigate to Delivered Order
Go to Orders
Filter by status: Delivered
Open the invoice that needs credit applied
View current Balance Due
Example:
Invoice #136089
Status: Delivered
Original Total: $1,334.86
Credits Previewed: $533.47
Current Balance: $1,334.86 (still full amount)
Step 2: Click "Apply Credit"
Button location:
Near invoice balance section
Or in actions/transaction menu
May be labeled "Apply Credit" or "Add Credit"
Opens credit application modal
Step 3: Select Credits to Apply
Credit Application Modal shows:
List of available credits for this customer
Credit details: amount, reason, date, available balance
Selection checkboxes
Running total of selected credits
Select credits to apply:
Check box next to credit(s) to apply
Can select one or multiple credits
System prevents over-crediting (total can't exceed invoice)
Example Selection:
Step 4: Allocate Credit Amounts
If credit is larger than invoice balance:
System will apply partial amount only
Remaining credit balance stays available
Example: $500 credit on $300 invoice → Apply $300, $200 remains
If credit is smaller than invoice balance:
Apply full credit amount
Can apply additional credits if available
Can combine multiple credits
Remaining balance can be paid by customer
Manual allocation (if needed):
Some systems allow entering specific amount to apply
Useful for partial credit application
Example: Apply $100 of $250 credit, save $150 for later
Step 5: Save Credit Application
Review summary:
Credits being applied
Amounts for each credit
New balance after credits
Confirmation of action
Click "Apply Credit" or "Save"
What happens immediately:
✅ Invoice balance reduced
New Balance = Previous Balance - Credits Applied
Example: $1,334.86 - $533.47 = $801.39
✅ Credits marked as applied
Full or partial credit amount marked as used
Applied credits moved to "Credit History"
Remaining credit balance (if any) still available
✅ Transaction history updated
Credits appear in invoice transaction section
Shows date, amount, reference number
Visible to staff and customer
🔄 Syncs to QuickBooks (within 5-15 minutes)
Credit Memos applied to Invoice in QB
Customer balance updated in QB
Accounting records match Masava
📧 Customer notification (if configured)
Email showing credit application
Updated invoice with new balance
Payment instructions for remaining amount
What the Invoice Shows After Application
Screen View:
Printed Invoice:
Applying Multiple Credits
You can apply multiple credits to a single invoice.
Example: Multiple Small Credits
Scenario:
Invoice total: $1,000.00
Available credits: $200, $150, $300, $250
Application:
Select all four credits
Total selected: $900.00
Apply to invoice
New balance: $100.00
Customer pays remaining $100
Result: Four credits successfully applied, customer only owes $100
Example: Credits Exceeding Invoice
Scenario:
Invoice total: $500.00
Available credits: $200, $350
Application:
Select both credits
System calculates: $200 + $350 = $550
Invoice only needs $500
System applies: $200 (full) + $300 (partial from $350 credit)
Remaining $50 from second credit stays available
Result:
Invoice fully paid by credits (balance $0)
$50 credit still available for next invoice
No overpayment issue
Combining Credits and Payments
Credits and payments can be applied to the same invoice.
Typical Workflow
Step 1: Apply credits first
Reduces invoice balance
Credits process faster than payments
Shows customer remaining amount to pay
Step 2: Customer pays remaining balance
Payment recorded for reduced amount
Example: $1,000 invoice, $300 credit, customer pays $700
Step 3: Invoice marked as paid
Balance: $0.00
Status: Paid in Full
Both credit and payment in transaction history
Example: Credit + Payment
Scenario: Invoice #136089 for Tramonte & Sons
Initial state:
Invoice total: $1,334.86
Credits available: $533.47
Customer will pay remainder
Actions:
Apply $533.47 in credits → Balance: $801.39
Customer sends check for $801.39
Record payment → Balance: $0.00
Final transaction history:
Benefits:
Clear breakdown for customer
Accurate accounting records
Matches QuickBooks exactly
Removing or Unapplying Credits
If a credit was applied by mistake, it can sometimes be removed.
When You Can Unapply Credits
✅ Usually possible:
Credit just applied (within same day)
Before QuickBooks sync completed
Before accounting period closed
With proper user permissions
❌ May not be possible:
After QuickBooks sync finalized
After accounting period closed
If payment also applied to invoice
System/organization policy restrictions
Steps to Unapply Credit
Step 1: Navigate to invoice
Open invoice detail page
Step 2: Find applied credit
View transaction history
Locate the credit transaction
Step 3: Click "Remove" or "Unapply"
Button/link next to credit in transaction history
May require permission confirmation
Step 4: Confirm removal
Credit unapplied from invoice
Invoice balance increases back
Credit becomes available again
Credit can be applied to different invoice
Note: If removal not possible due to QuickBooks sync, contact accounting team for manual adjustment.
Best Practices
For Pre-Delivery Credit Preview
✅ Always show credit preview for customers with available credits
Especially important for Tramonte customers
Prevents payment confusion
Improves customer satisfaction
✅ Verify credit amounts before previewing
Ensure credits are valid
Check expiration dates
Confirm credits belong to correct customer
✅ Clearly communicate preview vs application
Tell customer credits shown are preview only
Explain actual application happens after delivery
Provide estimated payment amount
✅ Update preview if order changes
If order total changes, update credit preview
Recalculate estimated final payment
Communicate changes to customer
For Credit Application
✅ Apply credits immediately after delivery
Don't wait days or weeks
Keeps customer balance accurate
Prevents confusion about amount owed
✅ Apply oldest credits first (FIFO)
First In, First Out method
Prevents credit expiration issues
Standard accounting practice
Exception: Customer specifies different preference
✅ Communicate credit application to customer
Send updated invoice showing credits applied
Clearly state new balance due
Include payment instructions for remainder
✅ Combine multiple credits when possible
Apply all available credits at once
Simplifies customer payment
Reduces number of transactions
✅ Verify QuickBooks sync after application
Check that credits applied in QB
Ensure customer balance matches
Review integration push log if issues
Avoiding Common Mistakes
⚠️ Don't forget to actually apply after delivery
Preview ≠ Application
Must click "Apply Credit" after delivery
Customer balance won't reduce until applied
⚠️ Don't over-credit invoices
System prevents this, but verify
Ensure total credits don't exceed invoice
Partial credit application if needed
⚠️ Don't apply expired credits
Check expiration dates
May need manager approval to extend
Communicate with customer if credit expired
💡 Tip: Batch-apply credits to multiple older invoices
If customer has large credit balance
Apply to oldest unpaid invoices first
Clears aged receivables
Improves customer account status
💡 Tip: For regular Tramonte customers, establish credit application workflow
Show credits on every invoice (preview)
Apply automatically after delivery
Standard operating procedure
Reduces support requests
Troubleshooting
"Cannot apply credit to this order"
Check:
✓ Is order status Delivered? (Required for actual application)
✓ Does credit belong to same customer?
✓ Is credit expired?
✓ Is credit already fully used?
✓ Do you have permission to apply credits?
Solutions:
Mark order as Delivered first
Verify customer match
Check credit availability
Request credit application permission from admin
Credit not showing as available
Check:
✓ Has credit been fully applied already?
✓ Is credit expired?
✓ Is credit for correct customer?
✓ Check if credit is in QuickBooks but not synced
Solutions:
View credit history to see if already used
Check expiration date
Verify customer account
Check QuickBooks sync status
→ See Credit Troubleshooting
Credit preview not showing on invoice print
Check:
✓ Were credits selected for preview?
✓ Is invoice template updated to show preview section?
✓ Try regenerating invoice PDF
Solutions:
Reselect credits for preview
Contact admin about invoice template
Refresh and reprint invoice
Applied credit not syncing to QuickBooks
Check:
✓ Is QuickBooks integration active?
✓ Was invoice already synced to QB first?
✓ Check integration push log for errors
✓ Wait 15 minutes for sync
Solutions:
Verify QB connection status
Ensure invoice exists in QB
Review sync errors
Real-World Examples
Example 1: Tramonte's Typical Workflow
Customer: Tramonte & Sons (regular customer with frequent credits)
Scenario: New order placed, customer has 2 available credits
Pre-Delivery:
Order created: $1,500 total
Show credit preview: $400 available
Invoice printed showing: "Estimated Final Payment: $1,100"
Customer prepares $1,100 payment
Post-Delivery:
Order delivered
Credits immediately applied: $400
New balance: $1,100
Customer check arrives for $1,100 (matches exactly)
Invoice paid in full
Result: Zero confusion, perfect payment, happy customer
Example 2: Multiple Credits on Large Order
Customer: Restaurant Supply Co.
Scenario: Large order with several accumulated credits
Order: $2,847.50 total
Available Credits:
Product return: $500
Pricing adjustment: $125
Promotional credit: $100
Previous overpayment: $22.50
Process:
Show all credits on invoice preview
Customer sees final amount: $2,100
After delivery, apply all 4 credits
Customer pays $2,100
Invoice paid, all credits cleared
Result: Customer's credit balance cleared, accurate payment received
Example 3: Partial Credit Application
Customer: Metro Wine Bar
Scenario: Large credit, smaller invoice
Invoice: $600 total Available Credit: $1,200 (from large return)
Process:
Apply $600 of the $1,200 credit
Invoice paid in full by credit
Remaining $600 credit saved for next order
No payment needed from customer
Credit balance tracked for future use
Result: Invoice paid, customer retains credit for next purchase
Related Documentation
Credit Management
Understanding Credits in Masava - Credit fundamentals
Credits on Invoices - How credits display on printed invoices
Credit Troubleshooting - Solving credit issues
Payment Topics
Recording Individual Payments - Combining credits with payments
Bulk Payment Entry for Multiple Invoices - Multiple invoices workflow
Integration
QuickBooks: Understanding the Sync Process - How credits sync
QuickBooks: Troubleshooting Sync Issues - Sync problems
Need Help?
For credit preview issues:
Verify customer has available credits
Check invoice template supports preview
Contact administrator for template updates
For credit application issues:
Check Credit Troubleshooting
Verify order is Delivered status
Ensure credit belongs to correct customer
For QuickBooks sync issues:
Review integration status
Check push log for errors
Reference QuickBooks: Troubleshooting Sync Issues
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