---
schema_version: "1"
id: fcd0cf7d07fefb292046c7ba71bdb1310952e0667223b4b154b66675ff9ada7a
title: Automatic Application of Credits to Settle Invoice Balances
collection: admin
version: current
locale: en-us
portal_url: https://docs.salesforce.com/admin/current/en-us/ind/264-0-0/billing_setup_apply_credits_to_posted_invoices.md
canonical_url: https://help.salesforce.com/s/articleView?id=ind.billing_setup_apply_credits_to_posted_invoices.htm&release=264.0.0&type=5
source_site: help.salesforce.com
content_type: documentation
content_hash: 5611ac435a60f46ddd07f144090bf4ed7a5a3813a605611df699b28c455d00ee
description: Eliminate the need to manually apply credit memos by automatically applying available credit memo balances to settle the balances of posted invoices.
products:
  - Revenue Cloud
release: "264"
---
# Automatic Application of Credits to Settle Invoice Balances

Eliminate the need to manually apply credit memos by automatically applying available credit memo balances to settle the balances of posted invoices.

### Required Editions

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small edition"><colgroup><col></colgroup><tbody><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: Lightning Experience</td></tr><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: <strong>Enterprise</strong>, <strong>Unlimited</strong>, and <strong>Developer</strong> Editions with <a href="https://help.salesforce.com/s/articleView?id=ind.revenue_licenses_areas_and_features.htm&amp;release=264.0.0&amp;type=5">the Revenue Cloud Advanced license or the Revenue Cloud Billing license</a></td></tr></tbody></table>

## Process Overview

When your Billing admin [enables the Apply Credits to Posted Invoices feature](https://help.salesforce.com/s/articleView?id=ind.billing_setup_credit_memo_features_enable.htm&release=264.0.0&type=5 "Set up Billing to automatically create credit memos from negative invoice lines and apply them to settle outstanding invoice balances, and to configure whether credits apply to invoices or invoice lines."), the system automatically applies the balances of credit memo to settle the balances of posted invoices based on the [credit application level](https://help.salesforce.com/s/articleView?id=ind.billing_setup_credit_memo_features_enable.htm&release=264.0.0&type=5 "Set up Billing to automatically create credit memos from negative invoice lines and apply them to settle outstanding invoice balances, and to configure whether credits apply to invoices or invoice lines.").

The automatic credit application process runs immediately after invoices are posted by using one of these methods:

- After a [scheduled invoice run completes](https://help.salesforce.com/s/articleView?id=ind.billing_automate_invoice_run_schedules.htm&release=264.0.0&type=5 "Set up invoice schedulers to generate invoices on a schedule or on demand. Select billing schedules by target date, billing period count, or both. Generate invoice documents during the run, or use a catch-up bill run to advance migrated schedules without creating invoices.").
- Using [Post Draft Invoices in Batch API](https://developer.salesforce.com/docs/atlas.en-us.revenue_lifecycle_management_dev_guide.meta/revenue_lifecycle_management_dev_guide/connect_resources_batch_draft_invoices_to_posted.htm).
- After running the [Post Draft Invoice Batch Run action](https://developer.salesforce.com/docs/atlas.en-us.revenue_lifecycle_management_dev_guide.meta/revenue_lifecycle_management_dev_guide/actions_obj_post_draft_invoice.htm).

## Visualizing the Process

This flowchart shows the step where credit application happens in the business process flow.

![Business process for applying credits during invoice runs](https://sf-zdocs-cdn-prod.zoominsoftware.com/tdta-ind-revenue-264-0-0-production-enus/91ca99c6-d5c8-4986-b961-c6b7801e0d0d/revenue/images/billing/business_process_apply_credits_to_invoices.png)