Goodwill credit is a complimentary credit balance given to customers as a gesture of goodwill — to acknowledge loyalty, resolve issues, or offer compensation. It can be applied toward purchases, and flows directly into your revenue recognition reports and ERP system for accurate financial tracking.

Available as part of Recurly RevRec

1Definition 2Key benefits 3Key details 4FAQ

Additional costTo access this feature, you must have an active subscription to either Recurly RevRec or the Standard edition. Contact your Recurly account manager or [email protected] for pricing details.

Prerequisites

A cancellation and refund policy that supports account crediting.

Limitations

Goodwill credits are non-transferable and must be used within the issuing account.
Credits may have expiration dates or usage conditions, depending on your business policy.

Definition

Goodwill credit is a complimentary credit balance given to customers as a gesture of goodwill. It can be applied toward purchases, facilitating payment adjustments and enhancing customer loyalty. Goodwill credits integrate seamlessly into your ERP system or revenue recognition ecosystem, streamlining reporting and financial tracking.

Key benefits

Streamlined revenue recognition Incorporating goodwill credits into revenue reports enhances financial accuracy by reflecting real-time customer balances and potential sales.

Enhanced financial reporting Goodwill credits contribute to a more comprehensive view of financial health, enabling precise revenue tracking and forecasting.

Increased operational efficiency Automated management of goodwill credits simplifies reconciliation and ensures credits are accurately reflected in financial statements.

Key details

When goodwill credit is allocated, Recurly generates a credit invoice reflecting the credit balance, which can be adjusted against subsequent payments. Credits are recorded as a single line in revenue recognition reports, with redemptions detailed separately — giving you a clear picture of credit usage and its impact on financial health.

The following table outlines the identifiers for goodwill credit transactions:

Origin	Activity	Plan code
credit-event	Goodwill issued	`credit-goodwill`
credit-event	Goodwill redeemed	`credit-goodwill-redeemed`
credit-event	Goodwill voided	`credit-goodwill-voided`

If goodwill credit is issued erroneously or remains unused, it can be voided — removing the balance from the customer's account. This action, along with all other credit transactions, is recorded in RevRec for comprehensive financial oversight.

FAQ

How are Goodwill Credits and their usage tracked in RevRec?

Goodwill credits appear as distinct lines identified by plan code:

Credit issued: credit-goodwill
Credit used/redeemed: credit-goodwill-redeemed
Credit canceled/voided: credit-goodwill-voided

Credit-related lines also show origin = credit-event.

What happens if a Goodwill Credit is given by mistake or is never used?

Void the credit. A voided credit is no longer available to the customer, and RevRec records a reversal line with plan code credit-goodwill-voided.