Service credits are a common form of compensation used to provide customers with financial incentives for service-related issues. These credits are typically offered when service providers fail to meet agreed-upon performance metrics or service-level objectives.
Service credits are intended to compensate customers for the impact of service disruptions, downtime, or other service-related issues. They can be used as a future payment if items are refunded on an invoice.
Service credits are a valuable tool for ensuring that customers are fairly compensated when service-related issues arise. Using this allows both service providers and customers can have greater confidence in the reliability and quality of their service relationship.
Giving/Deducting
Service credits can be given and deducted in the "Subscription Actions" in Advanced Billing. In the "Give/Deduct Service Credits" feature, a new window will appear asking whether to give or deduct service credits.
Giving Service Credits
After selecting "Give Credit", a screen prompting you to enter the amount of credit to give in the subscriptions currency as well as a memo will be shone. This amount will immediately be given to their credit account within the subscription once issued. The current and new credit balances will also be listed.
Deducting Service Credits
After selecting "Deduct Credit", a screen prompting you to enter the amount of credit to take away in your home currency as well as a memo will be shone. This amount will immediately be taken from their credit account within the subscription once issued. The current and new credit balances will also be listed.
Applying Service Credit
When service credit is applied to an invoice it will be created as a credit note on the invoice. Credit can be applied in one of two ways but these depend on the invoice. To learn more about credit notes please click here.
Recurring Subscriptions Invoices
Whether a subscription is automatic or remittance, and there is a service credit, the service credit will be applied to the next automatic subscription. This will be shown at the bottom of the invoice as a credit note, with the memo you had placed.
Remittance Subscription or Ad hoc Invoice
If there is an ad-hoc invoice being issued, then the service credit will need to be applied manually. To do this:
- Create or go to the desired ad hoc invoice by going through the invoices tab in the subscription.
- Click on the "Record Payment" button.
- Click on the "Apply Service Credit" option.
- Select the source of the Service Credits and the amount.
- Select "Apply".
The service credits will then be added to the invoice. If the amount is at or above the current due total, the invoice will move into a "Paid" status. If it is less than the due amount, the remaining will still need to payed by the customer.
Viewing Service Credit
Viewing service credits is easy for both users and customers alike.
In Advanced Billing
To look at the service credit for a particular subscription, navigate to the subscription and the current service credit amount will be listed in the summary.
To look at the history given, deducted, and applied credit, go to the service credits tab in the subscription.
When service credit is applied to an invoice, it will be listed as a credit and can be searchable via the "Transactions" tab of the "Billing" menu.
In Billing Portal
Customers can look at their service credit amount within their billing portal. This will be listed as "Current Service Credit Balance".