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# Customer credits: what customers have overpaid

When a customer pays more than an invoice's balance, the extra does not belong to revenue yet. It sits as a customer credit they can spend on a future invoice. The Customer Credits report is where you see what is still unspent.

## Record an overpayment

1. Open the invoice and click **Record payment**.
2. Enter what you received.
3. In **Amount to apply**, cover the invoice. The rest appears in **Amount to credit**.
4. Save. The extra now shows on the Customer Credits report.

|| A credit appears only when you put the extra in **Amount to credit**. An overpayment left on one invoice does not create one.

## Read the report

1. Open **All pages** in the left sidebar, then under **Reports** click [**Customer credits**](https://app.booksgpt.ai/go/customer-credits).
2. Leave the toggle on **Unspent**, or switch to **All** to include credits that are fully used or reversed.

![Customer credits with an unspent overpayment, a partly applied credit, and a reversed one](https://booksgpt.ai/help/reports/customer-credits.png)

### The columns mean

- **Issued** is how much the credit was for.
- **Remaining** is what the customer can still spend on it.
- **From** names the source: the payment reference, the payment date, or **Manual credit**.
- **Applied to** lists the invoices it has already covered, or says **Not applied yet**.

The two cards at the top total everything **Issued** and everything **Still available**.

## Spend a credit

| When you next record a payment for that customer, the dialog offers the credit under **Credits applied**, so it cancels part of the new invoice.

## Good to know

- A credit appears only when you put the extra in **Amount to credit**. An overpayment left on one invoice does not create one.
- To undo an overpayment, an owner or bookkeeper can open the row's menu and choose **Reverse source payment**. The original and the reversal stay in the books.
- The report reads the **Unapplied Customer Credits** account on the balance sheet, not A/R, so an unspent credit never distorts your aging. See "Read the A/R and A/P aging reports".
- **Export** downloads the table as CSV or Excel. See "Create, send, and get paid on an invoice" for recording the payment itself.