New: Easily Track Overpayments, Refunds, and Discounts

The new Credits feature allows you to track prepayments and overpayments on invoices, so you’ll know exactly what your clients owe.

In a perfect world, every project would go off without a hitch. You deliver great work, and your client happily pays the invoice. But in reality, working with different clients on different projects makes every invoice a little different too.

Sometimes a client wants to pay for your work before you’ve even created an invoice. Other times you may want to reward a loyal customer with a discount on their next invoice. And sometimes, you need to refund a client after an invoice has been paid.

To help with all of this, FreshBooks just launched the new Credits feature. It’s a powerful addition that allows you to track overpayments, refunds, and discounts, and easily apply them to invoices, so you know exactly how much a client owes.

What Are Credits?

Credits allow you to track prepayments and overpayments from clients, that you can easily apply to future invoices. This allows you to keep track of discounts, refunds, and service credits.

Why Should I Use Credits?

Credits are a great way to ensure you’re tracking every transaction between you and your clients – even when you don’t have an invoice created. It also allows you to build better relationships by offering discounts, service credits, and even refunds for your work – so you can be more flexible with your payments.

How Do I Create A Credit?

Creating a Credit is simple:

Log into your FreshBooks account Once on your Dashboard, click Create New in the top right corner Select Credit Choose a Credit Type Click on Add a Client to choose a Client Click on Date of Issue to change the date if needed Click on Add a Line to add Items or Services you’re giving a credit for Click Save to create the Credit, or click Send to email it directly to your Client

That’s it. Plus, once you’ve created a Credit, you can then View, Edit or Delete it. Click here to learn more.

How Do I Apply a Credit to an Invoice?

After creating a Credit, you can quickly apply it to an Invoice:

Click Invoices in your left navigation Click on the Invoice you want to apply the Credit to Click on the More Actions button Select Add a Payment If there is Credit available, it will automatically be selected for you Add Payment Notes if needed and click Add Payment to finish What Types of Credits Are There?

There are 3 types of Credits that you can create on FreshBooks:

Prepayments: For when a client has prepaid for a service, before an invoice has been created Overpayments: For when a customer overpays an invoice, and you want to carry the amount forward Credit Note: For when you want to apply an offer, service credit or refund for a client Wait: How Are Prepayment Credits Different Than Deposits?

Prepayment Credits can be used when a client voluntarily pays for your product or service ahead of time. Deposits can be used when you ask for payment upfront on a specific project.

What Else Can Credits Do?

Credits are also directly linked to each of your client’s Account Statements. This makes it easier for you to

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