Understanding credits and adjustments to your account (2024)

From time to time, Google might tweak your Google Ads balance. This is called an adjustment. Most of the time, adjustments come in the form of credits. Credits reduce your account balance, while debits increase your account balance.

You can find any adjustments applied to your account by clicking the Billing icon Understanding credits and adjustments to your account (1) on the left-side navigation menu, then selecting Summary. Click on the appropriate month to view the billing activity. Here are the kinds of credit adjustments you're most likely to find:

  • Courtesy: You'll notice this when a promotional code or courtesy credit is applied to your account. This credit is good for future advertising only and can't be refunded to you.
  • Invalid activity (or Invalid clicks): This one's for invalid clicks and impressions (those generated by robots, automated clicking tools, and other deceptive software). Google prohibits this kind of bad behavior, so you don't have to pay for these invalid clicks and impressions.

    We provide the details of service associated with the invalid traffic for which a credit is being issued. These details include the original invoice number, original month of service, PO number, account budget name, and campaign name associated with the invalid traffic. You can find this information on the Summary, Billing Activity or Transactions page of your Google Ads account, as well as your month-end invoice.

    Note: The PO number and the invoice number associated with the invalid activity might have changed if there was a rebill. In such cases, the PO number and invoice number provided are those from before the rebill.

  • Overdelivery: Sometimes Google shows your ad too much. As a result, your account accrues more costs than your average daily budget allows. If this happens, your account will receive a credit to cover the excess costs.
  • Overrun: You'll notice this if your advertising costs exceed your prepaid balance. Google will credit back the excess amount so that you don't end up paying for this activity. This only appears for accounts using manual payments.
  • Excess credits stored for future use: In instances where you receive more credits than what you spent in a particular month, you may notice a negative balance in your account. That negative balance is referred to as “excess credits”. In countries where Google can't generate negative invoices (For example, Turkey, China, or Taiwan) to comply with local regulatory requirements, Google will move these excess credits from showing on your invoice as a negative balance and keep them in storage for future consumption. In the period where this happens, you'll get a zero-balance invoice and the excess credits that were stored will automatically be used when you incur ad spending in any future month.
  • Excess credits applied from previous months: If in any previous months there are excess credits available and you happen to have ad spending in the current month, Google will apply the stored excess credits to your ad spend up to the limit of the credit balance. This line is showing you how much excess credits were applied to your ad spend in a particular month. In the event of account termination, this reflects the excess credits that can be refunded to you.
  • Remaining amount available for future use: Once the excess credits are applied to your ad spend but there are still some credits left, this line will tell you how much you have left for ad spend in any future month. This is a post-tax available credit amount. For example, if the amount shown is $110 USD and the tax rate is 10% in your country, you have $100 USD available for ad spending.

Was this helpful?

How can we improve it?

Understanding credits and adjustments to your account (2)

Drive Revenue with Optiscore

Want to improve account health and drive business goals? Learn from industry & Google experts on how to drive revenue with the help of Optimization Score & Auto Apply Recommendations.

Register Now

As an expert in online advertising and Google Ads, I bring a wealth of knowledge and hands-on experience to the table. Over the years, I have navigated the complexities of digital advertising platforms, staying abreast of updates and changes to ensure optimal campaign performance. My understanding goes beyond the surface, allowing me to delve into the intricacies of billing, adjustments, and credits within the Google Ads ecosystem.

Now, let's break down the concepts presented in the article:

  1. Google Ads Balance Adjustments:

    • Adjustments refer to changes made to your Google Ads balance, and they can be either credits or debits.
    • Credits reduce your account balance, while debits increase it.
  2. Locating Adjustments:

    • To find adjustments, click on the Billing icon in the left-side navigation menu and select Summary. Choose the appropriate month to view billing activity.
  3. Types of Credit Adjustments: a. Courtesy Credits:

    • Applied when a promotional code or courtesy credit is given.
    • Only usable for future advertising and cannot be refunded.

    b. Invalid Activity Credits:

    • Issued for invalid clicks and impressions generated by robots or deceptive software.
    • Details of the invalid traffic and associated service provided.

    c. Overdelivery Credits:

    • Given when Google displays your ad excessively, causing costs to exceed your daily budget.

    d. Overrun Credits:

    • Applied when advertising costs surpass the prepaid balance, applicable to accounts using manual payments.

    e. Excess Credits Stored:

    • Negative balance resulting from receiving more credits than spent.
    • In some countries, excess credits are stored for future use.

    f. Excess Credits Applied from Previous Months:

    • Credits from previous months are applied to current ad spend, up to the credit balance limit.

    g. Remaining Amount Available for Future Use:

    • Shows the post-tax available credit amount for future ad spending after excess credits are applied.
  4. Invoice and Excess Credits:

    • Excess credits may result in a zero-balance invoice, and stored excess credits are automatically used for future spending.
  5. Account Termination:

    • In case of account termination, the article mentions the reflection of excess credits that can be refunded.

This comprehensive overview provides insights into the various adjustments and credit scenarios one might encounter in the Google Ads billing process. Understanding these concepts is crucial for advertisers to manage their budgets effectively and make informed decisions in their digital advertising endeavors.

Understanding credits and adjustments to your account (2024)

FAQs

Understanding credits and adjustments to your account? ›

This is called an adjustment. Most of the time, adjustments come in the form of credits. Credits reduce your account balance, while debits increase your account balance.

What is credits and adjustments? ›

An adjustment is a transaction that debits or credits a customer's account by changing the amount due for a bill item, or the amount of a noncurrency balance. A credit adjustment decreases the customer's balance; that is, it decreases the amount a customer owes. A credit adjustment is represented as a negative number.

What does an adjustment to your account mean? ›

Account adjustments are entries made in the general journal at the end of an accounting period to bring account balances up-to-date. They are the result of internal events, which are events that occur within a business that don't involve an exchange of goods or services with another entity.

What does account credit adjustment mean? ›

Credit Adjustment: In this type, corrections are made that results in crediting the customer account. Credit adjustment generally happens due to reduction of bills because of an allowance, return or cancellation. It is the opposite of an invoice. Credit Adjustments are done through Credit Note screen.

What does it mean when a bank credits your account? ›

When you hear your banker say, “I'll credit your checking account,” it means the transaction will increase your checking account balance. Conversely, if your bank debits your account (e.g., takes a monthly service charge from your account) your checking account balance decreases.

What is payment adjustments? ›

A payment adjustment (or pay adjustment) is a change made to the amount you owe or are owed. This change can happen for several reasons, such as a mistake in the original billing, a return of merchandise, or a discount you received after the invoice was issued.

What does debit adjustment mean? ›

Debit adjustments place a debit entry on the customer's account, increasing what they owe. Debit adjustments might be used for returned check fees, finance charges, or to remove a credit that was accidentally or incorrectly processed.

What are some examples of transactions that may require adjustments? ›

The following might require adjusting journal entries:
  • Accrue wages earned by employees but not yet paid to them.
  • Accrue employer share of FICA taxes due.
  • Accrue property taxes.
  • Record interest expense paid on a mortgage or loan and update the loan balance.
  • Record prepaid insurance.

What are the two most common bank adjustments? ›

Common adjustments are deposits in transit, outstanding checks, nonsufficient funds, bank collections, interest income, service charges, and errors.

Why do some accounts need to be adjusted? ›

Adjusting entries are necessary to update all account balances before financial statements can be prepared. These adjustments are not the result of physical events or transactions but are rather caused by the passage of time or small changes in account balances.

Is an adjustment the same as credit? ›

This is called an adjustment. Most of the time, adjustments come in the form of credits. Credits reduce your account balance, while debits increase your account balance.

What is the difference between a charge adjustment and a credit adjustment? ›

Adjustments affect a patient's ledger in one of two ways: charge adjustments increase the patient's balance, but credit adjustments reduce the patient's balance. For reporting purposes—to help everyone know why money was given or taken away—it can be useful to assign descriptions to adjustments.

What is a credit balance refund adjustment? ›

A credit balance refund is a reimbursem*nt you get after winding up with a negative balance on your credit card, which might occur if you pay more than the total balance or if you get a refund for a returned purchase.

How do I know who credited money in my account? ›

Check your transaction history: Look for the specific credit entry in your transaction history. It may include details such as the sender's name or a reference number [1]. Review electronic notifications: Banks often send notifications via email, SMS, or mobile app alerts for any transactions made on your account.

Why do banks issue credits? ›

The Bottom Line. Bank credit allows individuals to purchase high-priced items that would otherwise be difficult to purchase just with cash, such as houses and cars. While some bank credit helps build assets, such as mortgages, certain bank credit, such as credit cards, can be dangerous if not managed correctly.

Is a credit balance positive or negative? ›

When you use your credit card to make a purchase, the total amount borrowed will appear as a positive balance on your credit card statement. A negative balance, on the other hand, will show up as a credit.

What is an adjustment in an electricity bill? ›

Adjustments in an electricity bill involve modifications or changes made to the billed amount based on specific circ*mstances. These adjustments can be either positive or negative, depending on the situation.

What does credits mean on tax return? ›

A credit is an amount you subtract from the tax you owe. This can lower your tax payment or increase your refund. Some credits are refundable — they can give you money back even if you don't owe any tax.

What does credits mean in payment? ›

A credit balance on your billing statement is an amount that the card issuer owes you. Credits are added to your account each time you make a payment. A credit might be added when you return something you bought with your credit card.

Top Articles
Latest Posts
Article information

Author: Nathanael Baumbach

Last Updated:

Views: 6470

Rating: 4.4 / 5 (75 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Nathanael Baumbach

Birthday: 1998-12-02

Address: Apt. 829 751 Glover View, West Orlando, IN 22436

Phone: +901025288581

Job: Internal IT Coordinator

Hobby: Gunsmithing, Motor sports, Flying, Skiing, Hooping, Lego building, Ice skating

Introduction: My name is Nathanael Baumbach, I am a fantastic, nice, victorious, brave, healthy, cute, glorious person who loves writing and wants to share my knowledge and understanding with you.