Introduction:
In the Membership & Payments section of the system, understanding the difference between a Charge and Payment is essential. These two concepts work together to track what a member owes and what they’ve paid, ensuring accurate and transparent financial records.
What is a charge?
Answer:
A charge is money that a member owes — it’s like adding a bill to their account. When you add a charge, you’re recording that the member needs to pay this amount.
What is a payment?
Answer:
A payment is money that a member pays toward their charges. When you record a payment, it reduces the member’s outstanding balance by covering part or all of a charge.
How do charges and payments work together?
Answer:
Charges and payments work as a pair to track what a member owes and what they’ve paid. When a payment is applied, the amount is deducted from the corresponding charge to keep the account balance accurate.
What happens if a payment doesn’t fully cover a charge?
Answer:
If a payment is less than the total charge, the outstanding balance will stay on the member’s account. Additional payments can be applied later until the charge is fully paid.
What happens if a payment is taken without a charge being created first?
Answer:
The payment will show on the member’s account as a credit. It will be automatically applied later when a charge is created.
Can I edit or remove a charge or payment?
Answer:
Yes. You can fix mistakes with charges or payments if something is wrong. After making changes, check the account to make sure the balance is correct.
Voiding a charge: If you void a charge, any payment that was applied to it becomes a credit on the member’s account.
Refunding a payment: If you refund a payment, the system creates a credit automatically. This keeps the member’s balance accurate by reducing what they owe. See: How can we process a refund?
Adjusting a credit balance: If a member has a credit because a payment was made without a corresponding charge, you can manually add a charge to apply to the credit and bring the member’s balance to $0.
To refund a credit balance: How can we refund a credit balance?
Additional Information:
Regularly review outstanding balances to prevent overdue payments.
For detailed instructions on adding or applying charges and payments, see: How do we use the Activity History on the Memberships & Payments screen?