How Prepaid Credits Track Income Type

Modified on Wed, 29 Apr at 8:27 PM

Overview

Prepaid credits are now assigned the payment's Income Type, giving you better visibility into the source of each credit. This article explains how Income Type assignment works, when it is applied automatically versus manually, and how to view Income Type data in the Cash Receipts Report.

How Income Type Assignment Works

To help track the source of prepaid credits, the system now records them on the credit record with the associated Income Type. The way this is assigned depends on whether your account has a default Income Type configured.

Automatic Assignment

Most dealers use a default Income Type (e.g., *CHK/CARD). If a default is configured, the Income Type is assigned automatically when you:

Post a payment
Insert a credit

Manual Selection

If you do not have a default Income Type configured, you will need to select the Income Type manually when you:

Post a payment
Create a credit

⚠️ IMPORTANT

If no default Income Type is set up on your account, you will be prompted to select one each time you post a payment or create a credit. Contact our Customer Success team if you would like to configure a default Income Type for your account.

Viewing Income Type on Reports

The Cash Receipts Report section for Prepaid Credits now includes the Income Type field. This allows you to:

What You Can Do	Benefit
Track credits by payment source	Quickly identify which Income Type generated each prepaid credit
Analyze prepaid credit patterns	Spot trends across payment types and credit sources over time
Generate more detailed financial reports	Produce richer reporting with Income Type included as a data point

You may also find the following articles helpful when working with payments and credits in Cornerstone Billing Solutions:

How to Post a Payment to a Customer Account — for applying a payment against one or more outstanding invoices.
How to Apply a Quick Credit to an Invoice — for applying a full pre-tax credit directly from a customer account's Invoice History.
How to Apply a Discount Credit to an Invoice — for applying a partial credit or crediting an individual line item on an invoice.
How to Unpost and Edit an Invoice — for unposting a current-month invoice, editing line items, and reapplying a prepaid credit.

Need Additional Help?

Our Customer Success team is here to assist you.

Phone: 847-405-9517 x1
Email: customer.success@alarmbills.com