How to Allocate and Deallocate a Credit from an Invoice

This process outlines how to apply (allocate) or remove (deallocate) a credit from a specific invoice. 

Allocating a credit reduces the amount due on the invoice, while deallocating removes the applied credit, restoring the original balance. 

This is useful for managing payments, and adjustments, and ensuring accurate billing records.

Overview

There are two types of credits in First Class

1. Available: The credit is available and yet to be applied to any invoice

2. Applied: The credit has been applied to a specific invoice.

NOTE: The application of “available credits” in most instances takes place automatically in First Class. For example, if a new enrolment takes place and an invoice is generated, if the customer has an “available credit” this will automatically apply to the new invoice.

The option to de-allocate and re-allocate credits can be useful if you have a specific invoice that you would like a specific credit to apply to.

How to deallocate a credit

Follow  the steps below to deallocate credit from an Invoice:

Step 1 - Under the Lists menu, go to the Active Students tab.

Step 2 - Search for the student and click on the student's name to open their student profile.

Step 3  - Navigate to the Ledger tab and locate the credit you wish to Deallocate.

Step 4 - Click the Action button next to the credit and select Deallocate.

Step 5 - A validation message will appear. Click Yes to confirm.

Step 6 - The credit will be deallocated from the invoice and will only display in the parent profile ledger until the credit is applied to another invoice.

Here are the steps on how to Allocate a credit from an Invoice:

Step 1 - Go to Parent Profile.

Step 2 - Navigate to the Ledger tab and locate the available credit you wish to Allocate to an invoice.

Step 3 - Click the Action button next to the credit and select Allocate.

Step 4 - Select an Invoice you want to allocate the credit to.

Step 5 - Click Save.

Step 6 - After saving, a message will appear that it was successfully saved and the credit is now applied to the invoice you selected.