The User Credit account is used as a payment account and also a control account in some respects. This account is similar to an accounts payable account that would be considered a liability account. It is money that is owed to the customer.
The User Credit account is where money may be held pending further account action that may occur through refunds, transfers, or applied toward new or existing balances. Credits may be created in the user credit account if a payment is made without some other offsetting purchase, amount due, or a user fee.
Customer credit balances within the user credit account can be set up to force customers to use any existing credits on their account before making further payments. This function is optional and can be enabled or disabled to force this choice on customers.
How Credit Balance Is Used
- When an overpayment is made on an account
- A cancellation that had not yet been refunded occurs on an account
- Fee adjustments are made that result in credit to accounts not yet refunded
- A transfer to another activity resulting in a reduced fee for item already paid
- User Credit is applied to a new fee or activity
- User Credit on account is refunded to customer
- User Credit is used toward a new program or fee
- Transfer into an activity that uses existing user credit