Credence Intro¶

Credence, at its core, is an accounting and property management System of Record. It coordinates activity between property Managers and their tenants and vendors and enables detailed insights into the business operations resulting from these relationships.

All activity between the aforementioned parties is translated into a series of ledger entries that are posted to a property's ledger. The ledger represents all transactions that have occurred at the property.

By effectively configuring a property and its associated Chart of Accounts, Credence can automatically generate ledger entries in real-time as management activities are performed.

To configure a property, Chart of Accounts, and/or any other core accounting objects, please work with the Credence support team ([email protected]).

Key Terms¶

Property¶

A property represents a physical building / asset. The property’s Owning Entity represents the legal entity that owns the asset. All activity in Credence ultimately revolves around a property. As such, a property can be viewed as a distinct collection of ledger entries that make up the property’s ledger.

Chart of Accounts¶

A set of accounts that are organized in a manner to aid Accountants, property Managers, and Asset Managers in classifying and understanding financial activity.

Ledger Entry & Bundle¶

A singular ledger entry is a line item in a property’s ledger representing a Debit or Credit to a singular account.

A bundle is a collection of ledger entries that represent both sides of an accounting record. A bundle’s ledger entries will always balance to zero, meaning a bundle’s Debits and Credits will sum to equal amounts.

Lease¶

A contractual agreement between a property and a tenant. The contract may include options, recoveries, and/or other related information. The financial agreements of a lease are represented by a set of lease charges.

A lease charge is a line item detailing payment terms over a set period of time within a lease contract. Lease charges can be tied to any or all units within a lease.

Receivable¶

A payment due from a tenant to a property. Financial details are represented by a set of charge items. Charge items may be tied to different objects in Credence.

Project¶

A CapEx or OpEx capital project occurring at a property. Capital projects are managed separately from development jobs.

Job¶

A development work package at a property. Jobs use the property’s Cost Breakdown Structure and cost codes for budgeting and job-cost tracking.

Vendor Contract¶

A contractual agreement between a property and a vendor made prior to services being performed. The financial agreements of a vendor contract are represented by a set of vendor charges.

A vendor charges is a line item detailing payment terms over a set period of time. Vendor charges may be tied to different objects in Credence.

Payable¶

A payment due from a property to a vendor. Financial details are represented by a set of charge items. Charge items may be tied to different objects in Credence.

Bank Account¶

An account at a property’s bank. Types of bank accounts may include Rent and Operating accounts.

Transaction¶

A banking transaction that occurs in a bank account and has been posted to the bank account’s statement.