On Timely, customer credit primarily functions as a balance of funds that a client has paid in excess, which can then be applied towards future services or purchases. This system is particularly relevant for managing overpayments, ensuring clients' extra funds are properly accounted for and readily available for their next visit or transaction.
Issuing Customer Credit from Overpayments
One of the key ways credit is established on Timely is when a customer overpays on a sale. Instead of a refund, the excess payment can be converted into a credit balance on their account. It's important to note that this process requires manual intervention and is not automated.
Here's how credit is issued in an overpayment scenario:
- Identify Overpayment: When a customer pays more than the total amount due for a service or product.
- Apply Extra Payment: The additional payment amount needs to be specifically applied to the customer's account within Timely.
- Issue Credit Manually: For the exact value of the overpayment, you must manually issue credit to the appropriate customer's account. This action formally designates the extra funds as usable credit.
- Record Payment: Finally, record the payment as fully received, noting the original payment method used for the transaction. This ensures financial records are accurate, reflecting both the full payment and the issued credit.
Steps to Issue Credit from Overpayment
| Step | Action | Key Detail |
|---|---|---|
| 1. Apply Extra Funds | Apply the overpaid amount to the customer's account. | This prepares the account for credit allocation. |
| 2. Issue Credit | Manually create and assign credit for the overpaid value to the customer. | This step is crucial and not automatic. |
| 3. Record Payment | Mark the original payment as fully received. | Use the original payment method for accurate record-keeping. |
Benefits of Managing Credit on Timely
Utilizing a credit system for overpayments offers several advantages for both businesses and customers:
- Customer Convenience: Provides a flexible solution for customers, allowing them to retain their extra funds for future use without immediate refunds.
- Streamlined Transactions: Simplifies future checkouts as customers can draw from their existing credit balance.
- Enhanced Customer Loyalty: A well-managed credit system reflects good customer service and can foster loyalty.
- Accurate Accounting: Ensures that all payments, even overpayments, are correctly recorded and reconciled within the system.
How Credit Functions
While the primary method of issuing credit on Timely, as outlined, stems from overpayments, the general purpose of this credit is to serve as a stored value. This stored value is intended to be redeemed against future services, products, or appointments with your business, providing a convenient and paperless way to manage customer balances.
Further Resources:
- For a general understanding of customer credit management, you can refer to resources on accounting best practices for managing customer accounts.
On Timely, credit primarily serves as a practical solution for managing customer overpayments, allowing businesses to accurately record excess funds and make them available for future client use through a manual issuance process.
