Create a Credit Through Overpayment

When a payment is made in the system and the amount of the payment exceeds the total amount of all outstanding invoices for that billing account, a credit is created. The process of creating a credit is the same as for creating a payment except for what happens after the payment is posted. In the image below, for example, the original payment amount was $4,500, of which $1,000 is being applied to Invoice 2, which has a balance of $1,000.

Since no other invoices are included in this payment and there is nowhere else to apply the remaining $3,500 of the original payment, when the payment is posted, the following changes occur:

• The $3,500 becomes a credit in the system for this billing account (#1 in the image below)
• The status of the payment changes from Draft to Posted - Credit on both the Payment screen (#2) and on the Payments List screen (#2). 
• The payment is assigned a number in the system for tracking purposes (#3)
• The status of the invoice changes from Partial Payment to Paid in Full (#4) because the current balance is now $0.00.

Payment screen updates after a credit is created in the system

Payments List screen changes after a credit is created in the system