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How Customer Balances and Credits Work

Track receivables, credits, and adjustments without losing invoice-level traceability.

Balance behavior

Customer balance updates after invoice issuance, payment allocation, debit notes, and credit notes.

Credit handling

Use credit notes for returns or commercial adjustments instead of editing closed invoices.

Control point

Set credit limits and approval thresholds for sales users to avoid uncontrolled exposure.

Next steps

After this workflow is configured, align teams on role permissions and reporting cadence.