Summary:
We are excited to officially announce that Credits are now available in Distru!
This new feature allows you to issue, track, and manage customer credits, helping streamline your workflows and keep your records clean and accurate.
How credits work
Credits can now be created and applied to customers inside Distru, whether or not you use the QuickBooks integration.
If you do not have QB integration, you can still fully use this feature within Distru.
🆕 Please contact your Customer Success Manager to request the credits feature to be enabled on your account
The support team is happy to help connect you to your CSM if you do not know who this is, reach out to them in the chat bubble anytime!
For customers with QuickBooks integration
If you are integrated with QuickBooks, credits can now sync between Distru and QuickBooks once the proper settings are enabled.
Because this can impact accounting workflows, we strongly recommend reaching out to your Customer Success Manager to:
Review how credits work with your existing setup
Enable and confirm the two-way sync
Walk through best practices for your team
Note: all users can see the toggle in settings but users must request a Distru teammate to enable
We are here to help
We're excited to answer any questions and provide training as this highly anticipated feature rolls out. Your Customer Success Manager is the best place to start if you want hands-on help getting set up, and our chat support team is always available for quick questions along the way.
Thank you for your continued partnership. We are thrilled to bring this feature to you.
Feature Guide: Managing Customer Credits
The Credits module provides a centralized system for managing customer returns, overpayments, and manual adjustments. This feature ensures your accounts receivable ledger remains accurate by treating credits as distinct financial entities that can be tracked, applied to invoices, and synchronized bi-directionally with QuickBooks Online (QBO).
1. Prerequisites: User Permissions
To interact with the Credits module, Users must be assigned the appropriate permissions in Settings > Roles.
Permission | Scope |
View Credits | Read-only access to credit balances on the Company Profile and the global Credits table. |
Create Credits | Ability to manually issue a credit or process a Return that generates a credit. |
Edit Credits | Ability to modify credit notes/amounts or Cancel an active credit. |
Delete Credits | Ability to soft-delete a credit record (only allowed if the credit is unused). |
🆕 Note: Users without the appropriate permissions will not see credit-related UI elements, including balances and the Credits table.
2. Automated Credit Generation
Distru automatically generates Credit entities in three specific scenarios to ensure ledger accuracy without manual intervention.
A. Customer Returns
When a Return is marked as Completed, the system automatically issues a credit for the total value of the returned items.
Traceability: Unlike generic adjustments, these credits retain the lineage of the specific inventory returned. You can view the associated Products, Packages, and Batches in the Line Items tab of the credit record.
B. Payment Overages (Unapplied Amounts)
Previously, paying more than the total due resulted in an invoice status of "Overpaid."
New Behavior: If a payment exceeds the invoice total (e.g., a $120 payment on a $100 invoice), Distru marks the invoice as Fully Paid and immediately converts the excess ($20) into a new Credit.
🆕 Important: Once an overpayment credit exists on an invoice, the customer on that invoice cannot be changed. If you need to reassign the invoice, the overpayment credit must be resolved first.
🆕 Deleting a sales order that has an associated overpayment credit will also delete that credit automatically.
🆕 Overpayment credits cannot be voided, deleted, or have their amount changed. To adjust an overpayment, void the associated payment instead.
C. Retroactive Invoice Adjustments
If a user edits a Fully Paid invoice to reduce its total (e.g., removing a line item or charge), the system calculates the difference between the Total Paid and the new Invoice Total. A credit is automatically issued for this difference.
3. Applying Credits to Invoices
Credits can be applied via the Receive Payment dialog.
Mixed Payment Methods: You may fund an invoice using a combination of Credits and standard payment methods (Cash, Check, Transfer) in a single transaction.
🆕 Selecting Specific Credits: When applying credits to a payment, you can now select which specific credits to use rather than being limited to automatic FIFO allocation alone. This is especially useful when a customer has multiple credits and you want to apply a particular one.
FIFO Allocation (default): When no specific credit is selected, the system uses First-In, First-Out logic, consuming the oldest available credits first.
🆕 Multiple credits per payment: When an invoice amount changes after a partial payment, Distru supports applying multiple credits in a single payment, including scenarios where invoice editing creates additional credit needs.
Payment History: The Payments section of the invoice detail view displays the allocation breakdown. If a credit usage is later voided, the entry will remain visible but struck-through to preserve the audit trail.
🆕 Credit balance visibility on Sales Orders: The Credits and outstanding balance for a customer are now always displayed on the Sales Order form, even if the balance is below the warning threshold. If the balance exceeds the threshold, an additional warning is shown. This gives sales reps and fulfillment teams clear visibility into available credits before an order is invoiced.
Technical Constraint: To prevent circular dependencies in the ledger, you cannot apply a credit to the specific invoice that generated it (e.g., an overpayment credit generated by Invoice A cannot be used to pay Invoice A).
4. Editing and Canceling Credits
Credits can be managed directly from the Credits table.
Editing: You may update the amount or notes of a manual credit. However, the system validates that the new amount is not lower than the amount already used by other invoices.
🆕 Internal & External Notes: The Credits table now supports Internal and External Notes columns, which are also included in CSV exports. You can search the Credits table by note content to quickly find relevant records.
Canceling: You may invalidate a credit. The system will prompt you to choose between:
Cancel Balance Only: Removes the remaining unused balance.
Cancel & Revert: Removes the balance and voids any previous applications of this credit to invoices (potentially reverting those invoices to "Unpaid").
🆕 Canceling credits with active credit uses (QBO-integrated accounts):
You can cancel a credit that has active uses. When doing so, you will be given the option to delete all credit uses as part of the cancellation (Cancel & Revert).
However, if you want to cancel a credit without removing its uses, Distru cannot do this directly in QBO.
In that case, Distru will instead reduce the credit's remaining balance to $0 rather than fully canceling it.
To view active credit uses before canceling, check the Transaction History tab on the credit record.
🆕 Overpayment credits cannot be voided, deleted, or have their amount changed (see Section 2B above for details)
5. QuickBooks Online (QBO) Synchronization
The Credits module features a two-way sync to ensure parity between Distru and QBO.
Sync Logic
Distru → QBO (manual and return credits): Credits created manually or from returns sync to QBO as Credit Memos.
Distru → QBO (overpayment credits): Credits generated from overpayments sync to QBO as an Unapplied Amount on the original Payment record (not as a standalone Credit Memo).
QBO → Distru: Credit Memos created in QBO sync back to Distru as Credits. Unapplied payment amounts in QBO also import into Distru as Credits.
🆕 Invoice payment numbers are now pushed to the corresponding QBO payment record when an invoice is paid in Distru.
🆕 Retroactive invoice sync: If you record a payment on an invoice that was not previously synced to QBO (e.g., it was created before the QBO integration was set up), Distru will now automatically push both the invoice and the payment to QBO at that time.
Critical Editing Restrictions
To maintain sync integrity, Overpayment Credits cannot be edited directly within Distru.
Reason: In QBO, an overpayment is a property of the Payment record (not a standalone entity). To adjust an overpayment credit, void the associated payment instead.
⚠️ Pre-February 25, 2026 accounts: If your account had overpayments sync to QBO before February 25, 2026, those records may have landed in QBO as Credit Memos rather than Unapplied Amounts. If your QBO books do not match Distru as a result, you can manually adjust the payment amounts on those Credit Memos in QBO. Contact your Customer Success Manager and we can also provide you with a list of the affected credit numbers to check. If manual correction is not feasible, please consult your bookkeeper.
🆕 Changing the Customer on an Invoice or Sales Order
🆕 If an invoice is mapped to QBO and has one or more non-voided payments, the customer on the associated sales order cannot be changed. You must void the payments first before reassigning the customer. Distru will display an error message explaining this when the action is attempted. This applies to accounts using either one-way or two-way QBO sync.
🆕 Verifying Sync - Finding QB IDs in Distru
🆕 For any synced invoice, credit, or purchase, the QuickBooks ID is now visible directly in Distru, both in the relevant table and on the detail page for each record. For invoice payments specifically, the QB ID is visible in the payments table and on the associated invoice page. If a record has no QB ID, it has not yet synced (check the QBO integration ⚡ status panel for errors).
🆕 Hard Disconnect
Distru users occasionally request Distru support that their QuickBooks Online integration in Distru be temporarily disconnected in order for that same Distru account to log into a different QuickBooks Online account.
When this occurs there are two ways to disconnect a company, both of which require a Distru user to reach out to customer support to begin the process:
soft disconnect
when the user intends on reconnecting the Distru account to the same overall QuickBooks Online account that Distru account was previously connected to, usually to use a different email/password
hard disconnect
when a user intends to reconnecting the Distru account to the completely different overall QuickBooks Online account that Distru account was not previously connected to
If you hard disconnect from QBO in Distru:
all QuickBooks IDs are cleared from your credits and invoices
There is no automatic re-sync after a hard disconnect, meaning invoices and payments will not re-sync to QBO on reconnect
Feel free to reach out to customer support to request a mass re-sync after the hard disconnect process has been completed + the new QBO account is connected and fully setup within Distru
If you re-enable two-way sync after a hard disconnect, credits may be voided and recreated as part of the re-sync process
⚠️ Do not request a hard disconnect unless you intend to fully re-establish the integration from scratch; contact your Customer Success Manager before doing so for additional support and insight