I have seen several invoices with a 'payments/credits' section in the invoice totals column. It was most often a negative value subtracting from the total invoice amount. I am from Croatia and the word credit means a loan from the bank with the loanee repaying that loan with interest. Can anyone explain what payments/credits are? Specifically what exactly are credits in this context?

1 Answer 1


In this context, a credit is money that the invoicing company owes to you for some reason, and so has subtracted from the invoice to net it off against the amount that you owe them. Your account with them was in credit at the time that the invoice was raised.

  • Would a discount apply to that category or is it a separate one? Sep 20, 2021 at 7:06
  • @MichaelMunta It depends how they’re treating the discount in their accounts. It’s one way that a discount could be applied to an invoice, yes.
    – Mike Scott
    Sep 20, 2021 at 7:36

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