Unallocated Credit refers to money that has been paid into a Client’s account but hasn’t yet been linked to any specific charges - such as Invoices, Credit Requests, or Ad Hoc Charges.
It is shown alongside the Invoice Balance and Available Balance under People > Clients > select the Client > Accounting, and only appears once the Client has credit that isn't tied to anything.
Highlighting "Unallocated Credit" on a Client's account.
Unallocated credit is useful for:
Clients who make general top-up payments in advance
Manually reconciling past transactions
Quickly settling outstanding charges without requiring a new payment
Applying unallocated credit to an Invoice
Go to Accounting > Raised Invoices > select the Invoice > Take payment, then choose Pay from client credit. Enter how much of the credit to put towards the Invoice and confirm.
Note: Pay from client credit only appears when the Client actually has unallocated credit available. If you can't see it, check the Unallocated Credit figure on their Accounting tab first.
Applying credit this way reduces the Unallocated Credit figure and marks the Invoice as paid (or part paid). It does not change the Client's Available Balance, because the charge was already counted against it when the Lesson or Ad Hoc Charge was recorded. See here for how the two balances differ.