Credit Memos and Pre-Payments

Credit Memos and Pre-Payments are options shown when creating a new Invoice.

Credit Memos are used to reduce the price of an invoice.

Pre-Payments create an open balance on the client's account. The open balance is not the same as the balance on an invoice. The Pre-Payment open balance is money that is available to apply to future invoices to that client. They do not reduce the balance on an invoice, they just apply towards it. You can apply payments to multiple invoices with a balance by selecting invoices in the list and inputting the amount for each one.