How Do I Create and Apply a Billing Credit?
A billing credit (also called a credit memo, credit note, or negative invoice) reduces the amount a client owes on an invoice.
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When to Use a Billing Credit
Common use cases include:
An invoice was issued by mistake.
A client was overcharged.
A partial or full refund is required.
A promotional credit is being applied.
Multiple past-due invoices need to be cleared more cleanly.
Before applying a credit to an invoice, you must first create the credit in the Credits Dashboard.
Create a Billing Credit
To create a new billing credit:
Click Billing in the global navigation bar.
Select Credits from the slide-in menu.
This opens the Credits Dashboard.
Click Add Credit.
Select a Client Name.
Confirm or adjust the Date (defaults to today).
Next, complete the credit details. Fields may autofill based on your selected Service Item.
Key fields include:
Service – Name of the credit
Description – Explanation of the credit
Quantity – Number of units credited
Rate – Dollar amount per unit
You can also:
Add notes in the Client Notes box
Include any relevant terms and conditions
Click Save Credit.
The billing credit is now created and available to apply.
Note: Credits can also originate from additional payments that are later applied to invoices.
Apply a Credit to an Invoice
To apply a credit:
Stay on the Credits Dashboard.
Click the Credit # of the desired credit.
You’ll see:
Credit details
Payment status
History of where the credit has been applied
Remaining available balance
Click Add to Invoice.
Select an open invoice from the Invoice # dropdown.
Enter the amount in the Amount to Credit field.
Click Apply.
Important:
The credit amount must be equal to or less than the available credit balance.
If you enter a higher amount, it will automatically reset to the maximum available.
The credited amount will be subtracted from the invoice balance and recorded in the credit history.
Manage or Modify a Credit
From the credit details screen, you can:
Void the credit
Refund the credit
Edit the credit
Download or Print the credit
Delete the credit (if applicable)
Use the More button or action icons to access these options.
Best Practice: Always review the remaining credit balance before applying it to avoid over-adjusting client accounts.
Summary
Billing credits in Canopy allow you to:
Correct invoice errors
Issue refunds
Apply promotional adjustments
Clear outstanding balances
Credits must be created first in the Credits Dashboard before being applied to invoices.
Once applied, all activity is tracked in the credit’s history for clear documentation.
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