How do I apply a credit on the customer’s account to an invoice?

A customer has a credit (negative invoice) on their account and you want to apply that amount to an outstanding invoice.  This is done with offsetting payments.  Apply a negative payment to the credit and a positive payment to the invoice.


  1. Go to the payments screen where you would normally enter payments.
  2. Select the customer.  This will list their outstanding invoices and will show the credit and any outstanding invoices.
  3. Enter “apply credit” for the check number.
  4. Enter zero for the payment amount.
  5. Check the box on the credit invoice to use the credit.  This will make a negative payment on the credit invoice.
  6. Check the box on in the debit invoice for which the credit is to be applied.
  7. Change the amount in the last column to be a positive amount of the credit.
  8. Save the payment.
  9. Print the payment report and update.

Make sure that the net payment for both invoices is zero.  A negative payment for the credit and a positive payment for the invoice.

If the credit is more than the invoice, edit the payment amount to be the amount you want to apply.  Remember the amount is negative on the credit.

Apply Credit

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Category: Accounts Receivable