When in-house credit is extended, the salon is making a loan to the client expecting them to pay them back at the end of a certain time frame. Under Accrual Accounting methods, the daily totals are recorded at the time the sale is made. It will appear on the Daily Totals report as a line item at the bottom of the revenue breakdown. It will also appear on the sales records based on the category it was sold.
IHC Payments is when credit is extended to the client. It will be seen as incoming revenue, but not be included in the cash/credit card totals for the day's Till balance. The client's account will be updated with amount of in-house credit they owe.
The (In-House Credit) are when the In-house credit is paid back and the cash is received for the credit. This amount will not show in the salon's gross and net sales for the day, but will be seen as incoming money for the Till balance.