Auto-Apply Credits on Invoice Send

Tabs allows you to automatically apply open customer credits when sending an invoice. This helps ensure customers are billed correctly without requiring manual tracking or follow-up.

What is Auto-Apply Credits?

When a customer has an open credit balance (via an unused credit memo), Tabs can automatically apply that credit to reduce the balance due on the next invoice sent.

This happens before the invoice is delivered to the customer and, if applicable, before any automatic charge is attempted.

Why This Matters

Without auto-apply enabled:

• Merchants must manually keep track of which customers have open credits that can be applied.

• Credits can only be manually applied after an invoice is sent.

• Customers will first receive an invoice for the full amount

Auto-apply removes this manual work and ensures customers see the correct balance due upfront.

How It Works

When Auto-Apply Credits is enabled:

1. You send an invoice from Tabs.

2. Tabs checks whether the customer has any open credits.

3. If open credits exist:

   • Credits are applied automatically to reduce the invoice balance.

   • The applied amount is the lower of:

     • The remaining invoice balance, or

     • The available credit balance.

4. The invoice is finalized and sent to the customer.

5. If the customer has autocharge enabled, the invoice will be charged after credits are applied.

Multiple Credits

• If a customer has multiple open credit memos, Tabs applies them in order from oldest to newest credit memo date.

Enabling Auto-Apply Credits

You can enable or disable this feature from Billing Settings.

Setting:

Automatically apply open credits to reduce balance when invoices are sent

• This setting applies globally to your account.

• You can turn it off at any time.

Visibility & Reporting

• Applied credits are visible:

  • On the invoice in Tabs

  • In your connected ERP

• The invoice balance will reflect the applied credit(s).

• Credit memos remain fully auditable and traceable.

Supported ERPs

Auto-apply credits are supported for merchants using:

• QuickBooks Online (QBO)

• NetSuite (NS)

• Rillet

Important Note for Rillet Users

Rillet does not currently support partial credit application.

Because of this:

• Tabs will only auto-apply a credit memo if its amount is equal to or less than the invoice total.

• Example:

  • Credit memo: $100

  • Invoice total: $90
    → The credit will not be auto-applied.

FAQ

Q: Will credits apply to already-sent invoices?
Auto-apply is only applicable for invoices that are being sent. However, you can manually credit an already sent invoice.

Q: Can I choose which credit applies to which invoice?
Not today. Credits are applied automatically in chronological order.

Q: What happens if the credit is larger than the invoice?
Only the amount needed to reduce the invoice to $0 is applied. The remaining credit stays open.