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Difference Between a Credit and a Payment Allocation in Invoices
Difference Between a Credit and a Payment Allocation in Invoices

Learn whether or not you should create and apply a credit or a payment allocation for Invoices in the Invoice Module

Stephen Kuhn avatar
Written by Stephen Kuhn
Updated over a week ago

Read Time: 2 minutes

Functionally, Payment Allocations and Credits are very different, even though they appear in in the same Allocations Section in the Invoice Module.

Both Credits and Payment Allocations are ways to change the totals owed on Invoices within Spoonfed.

What is a Payment Allocation?

A Payment Allocation is a way to apply a payment that the Customer made to a specific or multiple Invoices. When applied to an Invoice, the Payment Allocation reduces the total owed on the Invoice.

Payment Allocations are created and applied within the Payment Allocation Page of the Invoice Module.

What is a Credit?

The Credit is applied as a money issued back to the Customer that has paid on Account. It helps to modify an Invoice total without having to Void the Invoice. When applied, the Credit reduces the overall total owed of the Invoice.

Credits are created and applied within the Invoice itself.

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