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Overview

What it does:
  • Displays any positive balance (“credit”) a customer has on their account.
  • Helps you apply credits against future invoices or issue refunds.
  • Ensures outstanding credits are tracked for audit and customer satisfaction.
Prerequisites
  • Customer records exist under Selling > Customer
  • Relevant credit notes or payment entries have been created

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1.0 Check Credit Balance in Customer Profile

  1. Navigate to Selling > Customer > Customer List.
  2. Click the customer’s Name to open their profile.
  3. In the header section, locate Outstanding Credit (or Credit Balance)—this shows the total unapplied credit.

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2.0 View Credit Details via Customer Ledger

  1. Go to Accounts > Reports > Customer Ledger.
  2. Set filters:
    • Customer: select your customer
    • Account: “Accounts Receivable – CGIC” (or relevant AR account)
    • Date Range: choose a period covering when the credit was issued
  3. Click Refresh.
  4. Identify entries with Credit amounts (e.g., Credit Notes, Overpayments).
Negative invoice balances or unallocated payments appear as credits here.

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3.0 Create a Credit Note (If Not Already Issued)

  1. Navigate to Selling > Credit Note > New Credit Note.
  2. Fill in header details:
    • Customer
    • Credit Note Date
    • Reference Invoice (if crediting an existing invoice)
  3. In the Items table, add lines specifying items, quantities, and rates to credit.
  4. Verify Total Credit Amount.
  5. Click Save and Submit—this automatically increases the customer’s credit balance.

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4.0 Apply Credit to an Open Sales Invoice

  1. Open a Sales Invoice for that customer under Sales > Sales Invoice > Sales Invoice List.
  2. If the invoice is still unpaid or partially paid, click Allocate Credit (or Get Advances).
  3. In the popup, you will see available credit amounts (from Credit Notes or advance payments).
  4. Select the credit to apply—enter the portion or full amount to offset the invoice.
  5. Click Apply and Submit the invoice; the credit automatically reduces the amount due.
If the credit exceeds the invoice, the remaining amount stays as credit balance.

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5.0 Issue a Refund (If Customer Requests)

  1. Confirm that the customer’s credit balance is positive under Outstanding Credit.
  2. Go to Accounts > Payment Entry > New Payment Entry.
  3. Set:
    • Payment Type: Pay
    • Party Type: Customer
    • Party: select the customer
    • Paid From: your bank or cash account
    • Payment Amount: amount to refund
  4. In the References table, choose Reference Type = Credit Note (or “Advance”) and select the credit entry.
  5. Click Save, then Submit—this creates a negative receivable and reduces the credit balance.
By carefully managing customer credit balances in the CGIC App—including issuing credit notes, applying credits to invoices, and processing refunds—you’ll maintain accurate AR records, build customer trust, and ensure your financial reports reflect true outstanding balances.