Credit accounts or prepayments are usually used when the client wants to deposit money as credit, which will be spent later on. You can use credit on all categories, or you can choose only the required ones.
How to create a credit account?
Creating the credit account is the same as issuing an invoice, except for one difference in the second step of invoicing.
Go to the Finance section -> Outgoing Invoices -> New invoice, or start directly from a specific project.
In the first step of invoicing, fill in all the required data and proceed to the second step.
Instead of selecting the budget items, click on the "+Add prepayment" button and then select "Choose credit account > New credit account > Enter the amount and name".
4. Continue with the regular invoice creation process (enter dates, items, etc.). The invoice will be displayed in the Outgoing invoices section and also in the Credit accounts list.
How to transfer credit from Credit Account?
There are two options to transfer the credit:
a) Transferring credit to a budget item in the project detail
In the Project detail, select the budget item for which you want to use the credit and click on the already invoiced amount.
2. Click on the button "Get credit."
3. Select the Credit account and enter the desired amount.
4. After using the credit, the invoiced amount of the budget item will be updated and increased by the value drawn from the Credit account.
b) Transferring credit to budget item from the Finance section
Go to the Finance section -> Credit accounts.
Click on the required credit account title.
Click on the "Transfer credit" button in the upper right corner.
4. Choose the option "Transfer to Project" and select the required Project and budget item.
5. Insert the amount.
c) Transferring credit to another Credit account
Go to the Finance section -> Credit accounts.
Click on the required credit account title.
Click on the "Transfer credit" button in the upper right corner.
Choose the option "Transfer to credit account".
Select the required Credit account and insert the amount.
How to return used credit?
If you wish to return the credit, click on the invoiced amount of the given budget item and select the "Return credit" option. Insert the amount and click on the Return button.
Good to know
Issuing a prepayment or credit account invoice does not automatically add those funds to a project as revenue or credit. To have the amount reflected in the project, you need to draw it using the "Get credit" option described above.
The date you use for "Get credit" determines the period in which the drawn amount is reflected as revenue in profit and billing reports. For example, if you issue the invoice in January but only draw the first credit in March, the revenue for that project will appear in March, not January.