A billing credit, also known as a credit invoice or credit memo, is a way to detail a refund or credit to an invoice. For example, you may issue a billing credit if a customer asks for a refund, if you need to reclassify an invoice payment, or if you decide to give a customer a credit for any reason, like a promotional offer.
Before a billing credit can be added to an invoice, you need to create the credit on the Credits Dashboard. Canopy's Credits feature allows you to credit a client's account.
To learn how to apply a billing credit to an invoice, click here.
Heads Up! Applied credits are reflected in the Revenue by Client report for accurate financial tracking.
Create a Billing Credit
1. To get started, click Billing on the left primary navigation bar.
2. Choose Credits from the slide-in menu to open the Credits Dashboard.
3. Click Create credit.
4. Select a client using the Client Name box.
5. Select a Date.
The date will default to the current day.
6. Complete the credit information. Fields will be automatically filled according to your defined Service Item. Relevant fields include:
Service: Name of the credit.
Description: Description of the credit.
Quantity: Number of credits.
Rate: Amount to be credited.
7. Add a note to the Client Notes box.
8. Input any terms and conditions related to the credit.
9. Click Save credit.
The credit will be added to your Credits Dashboard.
Can I Reclassify an Invoice Payment as a Credit?
No. Canopy does not currently support reclassifying an invoice payment into a credit.
If a payment was made on an invoice and you need to return the funds to the client, refund the payment from the Payments page.
If you want the amount to remain available for future use instead of refunding it, create a credit separately on the client account and apply that credit to a later invoice as needed.
What to know
You cannot convert an invoice payment directly into a credit.
Refunds are issued from the Payments page, not from the invoice itself.
Credits must be created separately and then applied to another invoice later.
Refund a payment
Go to Payments.
Select the payment you want to refund.
Click Refund Payment.
Use a credit instead of a refund
Create a credit on the client account.
Save the credit for future use or apply it to a later invoice.
System limitation
Canopy does not currently offer a way to move an existing invoice payment into client credit. To keep funds available on the client account, create a credit separately rather than attempting to convert the original payment.