Platform

Student records Enrollment Billing Communication Classwork & Grades Volunteers Website builder

For Schools

Homeschool groups Private K-12 schools

Resources

Pricing Product Updates Blog Help Center

Compare

TeachHero vs FACTS SIS TeachHero vs Brightwheel TeachHero vs DreamClass TeachHero vs Tuio TeachHero vs Homeschool-Life
Book a demo Try it free

Knowledge Base / Billing

Credits

Updated October 5, 2026

Credits (credit memos) reduce what a family owes without money changing hands — scholarships, goodwill adjustments, or forgiving charges after a refund. You issue a credit to a student, then apply it to an open invoice, where it counts like a payment.

Issue a credit

  1. Go to Enrollment → Students and open the student.
  2. Open the Billing tab, then Credits.
  3. Click Issue credit.
  4. Enter the amount, keep or change the credit number, and give a Reason (for example "Scholarship" or "Dropped class").
  5. Click Create.

The Credits tab tracks each memo's amount, how much has been Used, and what's Remaining. Issuing a credit doesn't reduce anything by itself — apply it to an invoice so it counts against the balance.

You can also issue a credit from an overpaid payment: the payment's Unallocated amount alert has an Issue credit button that turns the extra money into account credit the family can use later (see Payments).

Apply a credit

A credit is applied on the invoice it counts against, from the invoice's Applied credits tab:

  1. Open the invoice from Billing → Invoices, or from the Invoices panel on the Billing tab of the student's page.
  2. Open the Applied credits tab and click Apply credit. It's grayed out unless the invoice is open.
  3. Select the Credit memo — each option shows the amount still available. If the student doesn't have the memo you need, create one from the field: enter the amount, keep or change the credit number, and give a Reason. The new memo is selected for you.
  4. Enter the Amount to apply. TeachHero suggests one for you — the smaller of your largest available credit memo and what the invoice can still take — and the amount can't exceed either.
  5. To send the credit to specific charges — a scholarship that should only cover tuition, say, not the registration fee — tick Apply to specific items and enter an amount for each charge. The amounts must add up to the Amount. Leave it unticked and the credit fills upfront charges first, then dated charges, then the first payment, then the plan, splitting within each by what each charge still owes.
  6. Click Apply.

The credit counts like a payment: the invoice's paid total, remaining balance, status, and payment dates update immediately, and so does each enrollment's share of what is owed. Anything already covered by payments or earlier credits isn't credited twice, and later payments only collect what the credit didn't cover.

Change or remove an applied credit

The invoice's Applied credits tab lists one row per charge a memo covers, grouped under that memo's number and reason, with each group's Subtotal and the tab's Total. Click Manage on a row for either:

  • Edit changes how much of the credit sits on that charge. Enter the new Amount applied and click Update amount. The form shows the most you can apply, which is limited by what the credit memo has left, what that charge still owes, and what the invoice still owes. Lowering the amount returns the difference to the credit memo.
  • Remove takes that charge's share off entirely. Any other charges the same memo covers keep theirs, and the amount goes back to the credit memo so it can be used elsewhere.

Either way, the invoice updates right away, and so does what the student and the family are shown as owing.