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Auto-Apply Credits and Set Overpayment Accounts

Updated

What this does: Sets whether credits and overpayments apply automatically to new invoices, and which accounts record them.

Applies to: GrowthZone Finance. You need permission to edit billing settings.

Before you start: Both settings are on General Billing Settings (Finance, Administrative section, Billing Settings).

Time needed: About 5 minutes.

Auto-apply credits to new invoices

Before You Begin:

  • You need staff access to your billing settings at Finance, Administrative section, Billing Settings to edit your billing configuration.
  • This setting applies only to invoices created for upcoming billing — it does not affect existing invoices.

If you enable Auto-Apply Credits to Newly Created Invoices on the General Billing Settings page under Finance, Administrative section, Billing Settings, over-payments will automatically be applied to newly created invoices.
NOTE: These are applied to only invoices created for upcoming billing.

  1. Go to Finance, Administrative section, click Billing Settings and select General Billing Settings.
    Finance rail expanded to the Billing section with Settings open and General Billing Settings highlighted
  2. In the Set Up Automated Scheduled Billing section, select Auto-Apply Credits to Newly Created Invoices.
  3. Click Done.
    Automated Scheduled Billing section of General Billing Settings with the Auto-Apply Credits to Newly Created Invoices checkbox boxed and the Done button visible

NOTE: The Auto-apply function will only impact future invoices, not existing invoices.

Choose the accounts used for overpayments

Before You Begin:

  • You need permission to manage billing/finance settings.
  • Decide which behavior you want: Record in default accounts (debits and credits the A/R and Deposit accounts set as default in your general billing settings) or Record in accounts tied to the overpaid invoice (legacy) (uses the A/R and Deposit accounts of the original invoice).
  • Note: If the overpayment is NOT tied to an invoice, the Record in default accounts option is always used.

When an overpayment is received, the system needs to understand which revenue account and deposit account should be used in recording the payment. The Overpayment Accounting Transaction list on the General Billing Settings page offers two options:

  • Record in default accounts: This option will debit and credit the A/R and Deposit accounts that you have selected as default on the General Billing Settings page under Finance, Administrative section, Billing Settings.
  • Record in accounts tied to the overpaid invoice (legacy): This option will use the A/R and Deposit accounts of the original invoice. NOTE: If the overpayment is NOT tied to an invoice, the Record in default accounts option is used.
  1. Go to Finance, Administrative section, click Billing Settings and select General Billing Settings.
  2. In the Overpayment Accounting Transaction list, select the option you wish to use.
    General Billing Settings page with the Overpayment Accounting Transaction list boxed
  3. Click Save to finalize your changes.

Common pitfalls

  • Expecting existing invoices to update: The Auto-Apply Credits setting only impacts future invoices created for upcoming billing. It will not retroactively apply credits or overpayments to invoices that already exist — those must be handled manually.
  • Assuming the legacy option always applies: If an overpayment is not tied to an invoice, GrowthZone falls back to the Record in default accounts option regardless of your selection — so make sure your default A/R and Deposit accounts are set correctly in your general billing settings.

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