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.

Read the report

1. Open All pages in the left sidebar, then under Reports click Customer credits.
2. Leave the toggle on Unspent, or switch to All to include credits that are fully used or reversed.

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

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.

Updated on: 12/09/2026