> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fynn.eu/llms.txt
> Use this file to discover all available pages before exploring further.

# Customer Credit

> Understand how customer credit works and is automatically applied to invoices

**Customer credit** (also called Wallet Balance) is a separate credit account that manages prepaid credits from your customers. This credit can be automatically applied to future invoices and reduces the amount to be paid.

## What is Customer Credit?

Customer credit works like a "credit account" for your customers. When a customer has credit, it means:

* **From a business perspective**: The customer has prepaid credit that they can use
* **From an accounting perspective**: You owe the customer money (negative accounts receivable balance)

The credit is automatically applied to new invoices, so the customer has to pay less.

## How Does Customer Credit Arise?

Customer credit can arise in various ways:

### 1. Overpayment

If a customer overpays an invoice, the overpaid amount is automatically credited as credit.

### 3. Credit for Future Invoices

If you create a credit note and choose the action "Credit for future invoices", the amount is added to the customer credit.

## Automatic Application to Invoices

When an invoice is finalized, the system automatically checks whether the customer has credit. If so, the credit is automatically applied to the invoice:

```
Example:
- Invoice: EUR 100
- Customer credit: EUR 30
- Result: Customer only has to pay EUR 70
```

<Note>
  The credit is only applied up to the invoice amount. If a customer has EUR 50 credit but the invoice is only EUR 30, only EUR 30 will be used. The remaining EUR 20 stays as credit.
</Note>

## Credit on Invoice Cancellation

When an invoice is canceled to which credit has already been applied, the following happens:

1. **Credit is reversed**: The used credit is credited back to the customer
2. **Complete reversal**: The original credit transaction is offset by a reversal
3. **Traceability**: All transactions remain in the system and are traceable (GoBD-compliant)

<Warning>
  Important: On cancellation, the credit is always reversed because the invoice is treated as if it never existed.
</Warning>

## Credit on Credit Notes

When you create a credit note for an already paid invoice, the credit is **not** automatically reversed. Instead, it depends on the chosen action:

| Action                         | Credit Impact                                                                              |
| ------------------------------ | ------------------------------------------------------------------------------------------ |
| **Refund**                     | No impact on credit. The credit note is treated as a new liability and settled via payout. |
| **Adjust Amount**              | No impact on credit. The credit note only offsets the accounts receivable balance.         |
| **Credit for Future Invoices** | The credit note amount is added to the customer credit.                                    |

<Info>
  Credit notes are separate documents and not corrections of the original invoice. Therefore, the originally used credit is not reversed.
</Info>

## Credit Transactions

Every movement of customer credit is documented as a separate transaction. This ensures:

* **Complete traceability**: Every change is documented
* **GoBD compliance**: All transactions are immutable and traceable
* **Transparency**: Customers can view their credit history

### Transaction Types

| Type                    | Description                       | Amount   |
| ----------------------- | --------------------------------- | -------- |
| **Manual Credit**       | Credit was added manually         | Positive |
| **Applied to Invoice**  | Credit was used for an invoice    | Negative |
| **Invoice Canceled**    | Reversal on invoice cancellation  | Positive |
| **Overpayment**         | Customer overpaid invoice         | Positive |
| **Credit Note Granted** | Credit note was granted as credit | Positive |

## View Credit

You can view a customer's current credit in the customer overview. There you can see:

* The current credit balance
* The transaction history
* Linked invoices and credit notes

<Note>
  Credit is maintained separately per currency. A customer can therefore have, for example, EUR 50 in EUR and \$30 in USD as credit.
</Note>

## Frequently Asked Questions

### Can a customer have negative credit?

No. The system prevents credit from becoming negative. When credit is applied to an invoice, only as much is used as is available.

### What happens when an invoice with credit is canceled?

The used credit is automatically reversed. The customer gets their credit back.

### Can I manually remove credit?

Yes, you can manually adjust credit. However, this should only be done in exceptional cases and is documented in the activity log.

### How does credit differ from accounts receivable balance?

* **Accounts receivable balance**: Shows the total receivables position (invoices minus payments minus credit notes)
* **Customer credit**: Shows only the available credit that can be applied to future invoices

When a customer has credit, the accounts receivable balance should be negative (you owe the customer money), and this amount should correspond to the credit.