The User Credit Account is used as a payment account and also as a control account in some respects. This account is similar to an accounts payable account that would be considered a liability account. It is money that is owed to the customer.
The User Credit account is where money may be held pending further account action that may occur through refunds, transfers, or applied toward new or existing balances. Credits may be created in the user credit account if a payment is made without some other offsetting purchase, the amount due, or a user fee.
Customer credit balances within the user credit account are set up to force customers to use any existing credits on their accounts before making further payments. This function is automatically enabled.
How Credit Balance Is Used
Flows in:
When an overpayment is made on an account
A cancellation that had not yet been refunded occurs on an account
Fee adjustments are made that result in a credit to accounts not yet refunded
A transfer to another activity results in a reduced fee for an item already paid
Flows Out:
User Credit is applied to a new fee or activity
User Credit on the account is refunded to the customer
User Credit is used toward a new program or fee
Transfer into an activity that uses existing user credit