When a client has an unallocated credit balance (from an overpayment or a credit note), you can apply that balance to an outstanding invoice instead of asking them to pay again.

  1. Open the invoice you want to settle.
  2. Click Apply Credits.
  3. The platform shows available credits on the client — receipts with unallocated balances, and credit notes not yet applied.
  4. Enter the amount of each credit to apply to each invoice line.
  5. Click Next to review the resulting allocations.
  6. Confirm and click Apply.

The invoice balance drops by the applied amount. If the credit covers the full balance, the invoice moves to Paid. The credit source is updated so the same amount cannot be applied twice.

Tip: Apply credits before recording new receipts. It keeps the client's running balance tidy and avoids accidentally re-billing them for amounts that were already on file.

Note: Credits can only be applied within the same currency. A USD overpayment can only be applied against USD invoices.