How to Create Credits in Houzz Pro

Sometimes a project costs less than estimated, an item gets returned, or a client changes their mind. When that happens and the client isn't getting cash back, they're getting a credit toward what they owe you, this is the article for you.

A credit means your client has funds available to apply to a future invoice. No money leaves your account. No refund is issued. It simply reduces what they owe next time.

Here's exactly what to do, in order.

Step 1: Confirm you're on a paid document

You can only create a credit on an invoice, proposal, or estimate that's already marked as paid. If the document isn't paid yet, this process won't work, so check that first.

Step 2: Create the negative balance

You have a few ways to do this, depending on the situation:

• Returning an item: Use the three-dot menu next to the line item and select Return Item. This automatically adds a negative line item labeled "(returned)" right below the original, for the exact amount.
• Duplicating and editing an item: Duplicate the line item, then edit the title (something like "Price Adjustment" or "Changed Mind") and change the cost to a negative amount.
• Adding a new line item: For a credit that isn't tied to a specific returned item, like a referral or promotional credit, add a new line item with a negative amount.
• Removing an item: You can remove the item entirely, though this makes it harder to trace the credit back to its source later, so use this one sparingly.

Whichever method you use, you'll see a negative balance appear in the document total once it's done.

Step 3: Convert the negative balance into a credit

• On estimates and proposals: Click Create Credit beneath the negative Balance Due, then confirm.
• On invoices: If you're ready to issue the invoice, issuing it will automatically create the credit for you. If you're not ready to issue it yet, click Create Credit beneath the negative Balance Due instead.

Step 4: Apply the credit to a future invoice

When you're ready to use the credit, log a payment on the invoice you want it applied to and select Apply Credit from the payment type dropdown. If the credit covers the full amount, great. If it only covers part of it, the remaining balance gets scheduled as a new payment so you can collect the rest.

Step 3: Loop in C2 Accounting

Once the refund is recorded in Houzz Pro and the funds are back in your client's hands, send the documentation to clients@c2-acctg.com.

Please include:

• Credit memo or document from Houzz Pro
• Invoice the credit was applied to
• Credit amount

Why this step matters

Houzz Pro and QuickBooks don't sync credits automatically. This email is what lets us record the credit correctly on our end, so your customer balances stay accurate and match what's actually happening in Houzz Pro.

🚧 One important note

Never manually edit an invoice's total or line items to account for a return or an adjustment. It might feel faster in the moment, but it breaks the match between Houzz Pro and QuickBooks, and untangling it afterward takes far more time than doing it right the first time. Always use the credit process above.

Have a credit situation that doesn't fit neatly into these steps? Reach out to us at clients@c2-acctg.com before you create it, we're happy to help you think it through.