How to Create and Apply a Discount Credit

Overview

There are two ways to create a discount credit for use against an invoice. This guide will help you understand when to use each method and provide step-by-step instructions.

Method 1: Quick Credit (Fastest Option)

When to Use Quick Credit

The Quick Credit feature is useful when you are viewing an invoice from the Invoice History screen. You can create a discount credit and apply it to the invoice you are currently viewing.

Best for:

• Immediate credit application to a specific invoice
• Quick discounts during customer service calls
• Simple, one-invoice credit scenarios

See also: Our separate article "Quick Credit for Specific Invoice Line Items" for more details about this feature.

Method 2: Creating Credits in Credit History

When to Use This Method

However, there are times where you will not be able to use the Quick Credit and need to create a credit that will be applied to a future invoice or the discount amount is greater than a single invoice.

Use Credit History when:

• The credit needs to be applied to a future invoice
• The discount amount is greater than a single invoice
• You need to control which invoice types can use the credit
• You want to set a date restriction on when the credit becomes available

Step-by-Step: Creating a Credit in Credit History

Step 1: Navigate to the Customer Account

1. Search for the customer
2. Double-click on the account that you wish to create a credit for

Step 2: Open Credit History

1. Click on "Credit History"

Step 3: Create New Credit

1. Click on "Insert"

Step 4: Enter Credit Details

Enter the following information:

• Original Credit Amount - The total credit amount
• Type of Credit - Choose "Discount"
• Check Number - Type "Discount"
• Description of Credit - Enter a description (you can be more specific here)
• Description to Print - What will appear on the invoice

Once you are done, click OK.

Step 5: Configure Credit Options (Optional)

Invoice Type Selection

You can select what type of invoices the credit can be applied against:

• Recurring Invoices - Automatic recurring billing
• Product Invoices (P invoices) - One-time charges
• Both types - Credit can apply to any invoice

Date Restriction

You can also enter a date for "Available for Invoices Dated After." This will not allow the credit to be applied to an invoice created before the designated date.

Use case: This is useful for giving referral credits to subscribers and allows you to make sure the referral becomes a paying customer before a credit is applied.

How Credits Are Applied

Automatic Application

A credit created this way will wait to be applied to a future designated invoice type that is generated:

• Recurring invoices will automatically pull the credit
• P invoices (Product invoices) will prompt you that there is an available credit amount that can be applied

Manual Application to Existing Invoices

If you wish the credit you just created to be applied to an existing invoice, you will need to manually apply the credit.

Steps to Manually Apply Credit:

Step 1: Open Invoice History

1. Click on "Invoice History"

Step 2: Open the Invoice

1. Select and open the invoice you want to apply the credit to

Step 3: Apply Credit

1. Click on "Apply Credit"

Step 4: Enter Credit Amount

1. Enter the Amount of Credit to Apply
2. Click OK

Step 5: Confirm

1. Click OK to complete the application

Troubleshooting: Why Isn't My Credit Applying?

Issue 1: Invoice Type Restriction

Problem: Check to see if you selected the invoice type. If only "Product Invoices" is selected, the credit cannot be applied to a recurring charge.

Solution: Edit the credit and select the appropriate invoice types.

Issue 2: Date Restriction

Problem: Check to see if the "Available for Invoices Dated After" has a date. Credits can only be applied to invoices with created dates after that date.

Solution: Either wait until an invoice is created after the specified date, or edit the credit to remove or adjust the date restriction.

Best Practices

For Quick Discounts

• Use Quick Credit when working directly with a customer on the phone
• Verify the credit amount before applying

For Future Credits

• Use Credit History for referral credits or promotional offers
• Set date restrictions to ensure conditions are met before credits apply
• Document the reason in the Description field for future reference

For Large Credits

• If a credit is larger than one invoice, create it in Credit History
• It will automatically apply to subsequent invoices until exhausted

Credit Tracking

• Review Credit History regularly to see outstanding credits
• Check for old, unused credits that may need attention
• Document credit reasons for audit purposes

Need Help?

Still have questions? Contact Cornerstone Holding Co. 847-405-9517 or email us customer.success@alarmbills.com