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How do Credits work?


Credits are a great way to track payments received from Clients that have not been applied yet. You can apply this Credit towards existing and new Invoices for payment in a snap! If you are looking for a way to request and track Deposits in FreshBooks, please see How do Deposits work?

How to add Credit

  1. Go to the Invoices tab and then the Credits sub-tab
  2. Click on the New Credit button
  3. Fill out the Credit receipt exactly the same way you would do when you create a new Invoice (select a Client from the drop-down, enter the amount in the Tasks/Items section)
  4. Save and/or Send by Email the Credit receipt to the Client. You can see this newly created Credit in the Credits sub-tab now.


How to apply Credit as payment on new Invoices

  1. Create an Invoice as usual, but don’t Save/Send yet!
  2. If this is a new Invoice, you’ll see below the Balance Due, a highlighted field with an option to Apply credit of $X.XX as payment. Check the box
  3. Feel free to add something in the Notes Visible to Client box about the Credit being applied as an advance payment
  4. Save and/or Send the Invoice by Email/Snail Mail. The Credit will be automatically applied!


How to apply Credit as payment on existing Invoices

  1. Go to the Invoices tab
  2. Check the box besides the Invoice
  3. Click on the Enter Payment button above the list
  4. Enter_Payment_for_Credits

  5. Select Credit from the dropdown, it will tell you the Credit Balance for that Client
  6. The payment amount will default to the full Credit amount/Invoice total (depending on which is lower). If you wish to apply a lesser amount, simply change the amount
  7. Click the Save button and now the Credit is applied to the Invoice!


How to delete a Credit

  1. Go to the Invoices tab
  2. Click on the Credits sub-tab
  3. Check the box off next to the Credit
  4. Click the Delete That’s it!