Creating Billing Adjustments
Credit a client or add a charge after an invoice is finalized
Applies to: Premium · LawBillity
Once a client has received a finalized invoice, don't change the invoice itself. If something was wrong, such as a rate, the hours, or a charge the client disputes, record an adjustment. The invoice stays as the client saw it, and their balance and statement show the change.
When to Use One
If...
Do this
You billed at the wrong rate
Credit the difference.
The client disputes a charge and you agree to lower it
Credit the amount you agreed.
You left an expense or service off a finalized invoice
Add a charge.
You're writing off an unpaid balance
Credit the amount you won't collect.
Creating an Adjustment
- Go to Billing > Adjustments.
- Click Add Credit/Debit. (To give money back to a client, use Add Refund instead.)
- Choose the client.
- Enter the amount as a credit (it lowers what the client owes) or a debit (it adds a charge).
- Add a description that explains the change, for example: Rate correction for June, billed at $150/hr, should have been $125/hr.
- Click Save.
Where It Shows Up
Adjustments appear in the client's billing history, on client statements as their own line with your description, and in billing reports, so your totals include them. See Client Statements.
Common Problems
- The invoice is still a draft, or the client hasn’t received it. You don't need an adjustment. Edit the draft, or unfinalize the invoice on Billing > Invoices and fix it. See Finalizing and Sending an Invoice.
- The client paid too much and wants money back. Use Add Refund.
- The adjustment isn’t on the invoice itself. Turn on Invoice Reconciliation in Admin > Settings > Customize > Invoices to show payments and adjustments applied to each invoice. See Setting Up Your Invoices: Logo, Template, Late Fees, and Discounts.
- A line was $0.00 because a rate was missing. Fix the rate for next time too. See Why Does My Invoice Show $0.00?.