Credits are independent transactions that reduce a student's account balance. Unlike charge adjustments, credits stand alone and directly reduce the payer's owed amount.
If credits are added to a student's account, they will automatically apply to future invoices as they are posted.
Types of credits and how they are issued
Credits automatically created from an overpayment |
Credits are created when a payment made by the payer is higher than the amount of charges that have been posted for their student.
This can happen when:
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Credits manually issued by a provider |
Administrators can issue a credit to reduce the amount owed on a student's account and apply it to an invoice.
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How credits apply
If a credit exists due to an overpayment:
The next charge posted will reduce the credit first
Only the remaining balance (if any) will require payment from the payer's payment method
When to manually issue a credit
Credits are useful when you want to reduce a student's account balance without issuing a refund.
Common examples include:
Referral bonuses for families
Temporary or unexpected closures
Scholarships reducing tuition owed
Applying a student’s security deposit to the final invoice
Note: Issuing a credit does not return money to the payer's original payment method. To return funds to the payer, a refund must be issued.
Where to view student credits
Credits can be viewed from a student's billing profile.
View available credits
Available credits are credits that have not been applied to an invoice.
Log in on the web
Select Billing in the sidebar menu
Click a student to open their billing profile
Under Current activity, select Available credits & payments
View applied or voided credits
Credits that have been applied to invoices or voided can be viewed in the transaction history.
Log in on the web
Select Billing in the sidebar menu
Click a student to open their billing profile
Select All transactions > Credits & payments
Manage existing credits
Once a credit exists on a student's account, administrators can:
Refund a credit if the money should be returned to the payer
Void a credit if the credit was issued by mistake
Adjust or unapply a credit to change how it applies to invoices
Visit the related resources to learn more.
FAQs
I need to reduce a charge. Should I use credits for this?
I need to reduce a charge. Should I use credits for this?
Issuing credits is not the same as reducing a charge as credits simply lowers the balance owed by the parent while the original charge stays the same. You can adjust the charge to reduce the overall balance due by taking steps here: Adjust invoice amount.
What's the difference between credits, refunds, and charge adjustments?
What's the difference between credits, refunds, and charge adjustments?
Credits reduce a student’s account balance and apply to future invoices, but they do not return money to the payer. If money should be returned, a refund must be issued, while charge adjustments are used to change the amount of an existing charge or invoice.