Credits are typically created when:
- A customer returns products or cancels a subscription early and money needs to be returned to them.
- When the original invoice amount has been overstated and you owe them money.
- Other circumstances where a business is giving money back to the customer. An example of this could be where a company provides a customer with a credit for referrals the customers provided or loyalty rewards for being a longtime or valued customer.
Stax Bill offers two ways to credit a customer:
- Reversals via a posted invoices - if a reversal is done on a product or subscription via a customer's invoice, a Credit Note is created and assigned to that invoice.
- A Credit created via Credits - a general credit provided to a customer, that may or may not relate to a specific invoice. Credits can be allocated to a specific invoice or placed into Available credits for use on future invoices.