Reservation credits allow you to assign a credit to a specific reservation which can be applied as a payment toward a future charge. This is a great way to compensate a guest for an issue during their stay, or a great way to avoid refunding a credit card payment and paying unnecessary fees.
A credit can be assigned to a specific reservation or a specific guest, and can be transferred between the two. Credits assigned to a guest can automatically be used to pay when they make a new reservation through the reservation portal.
Adding credit to a reservation
To add a reservation credit to a reservation, just go to any reservation and click the Charges tab. On the summary pane at the top, you will see the amount of available reservation credit as shown below.

Click the gray reservation credit button to edit the amount of available credit.

Once you have entered the amount of credit available to the reservation, click Update. You will now see the amount of available credit in green.

This reservation now has credit available that can be used to make a payment.
Using reservation credit
To use reservation credit, click Add Payment to add a payment to an unpaid charge, and select Reservation Credit as the payment method. This option will only appear if the reservation has available credit to use. The payment amount cannot be higher than the amount of credit available.

Once you click Save, you will then see the payment listed with the payment method of Reservation Credit.

Adding credit to a guest for later use
If a guest will not be able to use the credit on their current reservation, you can transfer the reservation credit to the guest so it can be used on a future reservation. Just click the Guest tab, and click Transfer reservation credit to guest.

You will then see the amount of credit is attached to the guest, and there will no longer be any credit available for the reservation. If a credit is available for the guest and you want to use it on the current reservation, click Transfer guest credit to reservation.

This will remove the credit from the guest and add it to the reservation so it can be used as a payment method.
You can also add credit directly to a guest by editing the guest. You can edit a guest from the Guest tab of a reservation by clicking Edit guest. You can also search for and edit a guest by clicking the Search Guests menu item under the Guests section of the main menu.

If a guest has available credit and they make a new reservation from the reservation portal, their available credit will be used as a payment method before their credit card will be charged for the deposit due.
For example, if a guest has $10 in reservation credit available and they make a new reservation in which they owe a $50 deposit, the $10 will be used and their credit card will be charged for the remaining $40 balance.