Chart Configuration¶
Overview¶
A chart is a list of accounts. Properties are assigned a chart and book ledger entries to its accounts. Financial statements group those accounts into a statement outline: which folder each account sits in, which subtotals include it, and which specialized calculations look for it.
A chart reaches an outline in one of two ways:
- Through mapping. Each account maps to an account on the Credence Chart, which is the shared outline maintained by Credence. This is how most charts report, and how portfolios with different charts report together.
- As its own outline. When a chart is marked Statement outline, its own accounts carry the report sections, and statements can use its numbers and names directly.
Every account carries three reporting settings:
- Account type is the account's accounting nature: which statement it belongs to, its normal balance, and whether it closes at year end. It belongs to the account on every chart.
- Report section places the account in a statement folder within its type. The folder decides which subtotals, such as NOI and EBITDA, include it.
- Report classification optionally marks a specific financial meaning, such as Debt or Free Rent, that a calculation looks for.
Getting these right matters because Credence never guesses reporting meaning from an account's number or name. An account in the wrong section moves money into the wrong subtotal; an account with a missing classification is left out of the calculation that needs it.
Definitions¶
| Term | Meaning |
|---|---|
| Posting chart | A chart assigned to one or more properties. Ledger entries post to its accounts. |
| Statement outline | A chart whose accounts supply the folders statements use. Every account on it has an account type and a report section that fits that type. |
| Credence Chart | The shared statement outline maintained by Credence. Nothing posts to it; property accounts map to it for portfolio reporting. |
| Account type | Asset, liability, equity, revenue, or expense. Revenue and expense accounts appear on the income statement; asset, liability, and equity accounts appear on the balance sheet. |
| Report section | The statement folder for an account. Sections are a fixed list, and each section is valid only for certain account types. |
| Report classification | An optional financial meaning used by a specific calculation. Classifications are a fixed list. Many accounts can share one classification. |
| Subtotal | A statement line calculated from a list of sections, such as Net Operating Income. Subtotals are not accounts and cannot be mapped to. |
Rules and Behavior¶
Posting charts and statement outlines¶
A chart is a posting chart because properties are assigned to it. Whether it is also a statement outline is a choice you make on the chart.
| Setup | Use it when |
|---|---|
| Posting chart, mapped to the Credence Chart | Properties book to this chart and you report in the Credence outline. Most charts work this way. |
| Posting chart that is also a statement outline | Your properties share this chart and you want statements in its own outline, using its own account numbers and names. |
| Statement outline with no properties | You keep a separate management outline that no property posts to. |
A chart can be mapped to the Credence Chart and be its own statement outline at the same time. The two outlines are separate report choices; neither replaces the other.
Making a chart a statement outline¶
To turn on Statement outline, every account on the chart needs an account type and a report section that fits that type. Inactive accounts count too, because their historical activity still appears on statements for past periods.
You can fill in the missing sections and turn on Statement outline in the same save. If any account is still incomplete, Credence saves nothing and lists the incomplete account numbers.
Once a chart is a statement outline, adding or editing an account requires an account type and a fitting report section. Report classification stays optional. The account upload cannot set sections, so add or complete accounts on a statement outline from the chart page.
A chart stays a statement outline while accounts on other charts map into it. Clear those mappings before turning it off.
Mapping a chart into an outline¶
A posting chart reports through every outline it maps into: the Credence Chart, its own outline when it is one, and any of your other statement outlines. Each account has at most one mapped account per outline. Mapping does not change where entries post.
- Open the chart and choose More Actions → Add Outline.
- Choose the outline. The list shows the Credence Chart and your statement outlines that this chart does not map into yet.
- For each account, pick the outline account it rolls into. Each picker offers outline accounts of the same account type. Turn on Unmapped only to see the accounts still left, including any mapped to an account of a different type.
- Save. You can come back and finish later.
The chart's Outlines tab lists each outline with how many accounts are mapped and a status, and links to edit that mapping. Remove Outline on the mapping page clears every mapping from this chart into that outline. An outline's own Outlines tab also lists the charts that map into it, with each chart's status.
An account's page shows a Statement Outlines table with where the account lands on each outline, or Unmapped, and links to change one account at a time. When you add an account to a chart that maps into outlines, Credence links to each outline it is unmapped in and says what that does to reports.
Fully mapped charts¶
A chart is fully mapped into an outline when every account on it, inactive ones included, maps to an outline account of the same account type. An account with no account type can map to any outline account. Credence flags the gaps so they are easy to find:
- The chart's page shows Outline mapping with Fully mapped, or how many outlines are not, and the Outlines tab shows the count on its label.
- Each outline row shows how many accounts are unmapped and how many are mapped to an account of a different type, with a Fix link that opens the mapping page with Unmapped only turned on.
- The chart list marks charts with Unmapped accounts.
You can add accounts and map them later, in any order. Until a chart is fully mapped into one of your statement outlines, reports cannot select that outline for its properties. The Credence Chart stays available and shows any unmapped activity in Unmapped.
Reporting with an outline¶
The report chart picker lists the Credence Chart, the charts of the selected properties, and your statement outlines. An outline is selectable only when every selected property's chart is the outline or is fully mapped into it; otherwise it is listed as unavailable, with how many accounts are not mapped and on which chart. Selecting an outline uses its accounts as report lines, in account-number order where digits compare as numbers (6100, 6100-01, 6100A, 6200). Every selected property is included: accounts on the outline are themselves, accounts on other charts roll into the outline account they map to, and on the Credence Chart anything unmapped appears in Unmapped. Selecting a chart that is not an outline keeps the Credence folders. See Financial Reports.
Choosing an account type¶
Choose the type from what the account holds, not from its number.
| Type | Holds | Normal balance |
|---|---|---|
| Asset | Cash, receivables, prepaid items, buildings, capital improvements | Debit |
| Liability | Payables, accruals, security deposits, prepaid rent, loans | Credit |
| Equity | Contributions, distributions, retained earnings | Credit |
| Revenue | Rent, recoveries, other income, vacancy and credit loss | Credit |
| Expense | Operating costs, fees, interest, taxes, depreciation | Debit |
Choosing a report section¶
Pick the section that matches how the account should be presented and totaled. A section must fit the account's type: Credence refuses, for example, an operating-expense section on an asset account. Each section belongs with one account type, except Purchase & Sale (asset or expense) and Intercompany (asset or liability). The examples are accounts on the Credence Chart.
Income statement sections¶
| Section | Type | What belongs here | Credence Chart examples |
|---|---|---|---|
| Rental Income | Revenue | Rent and rent adjustments from leases | Rental Revenue; Absorption & Turnover Vacancy; Free Rent |
| Other Income | Revenue | Recoveries and non-rent revenue | Contractual Recoveries; Other Revenue; Vacancy & Credit Loss; Non-Property Revenue |
| Operating Expenses - Reimbursable | Expense | Property operating costs recoverable from tenants | Real Estate Taxes Rec; Insurance; Utilities Rec; Repairs and Maintenance Rec; Property Management Fee |
| Operating Expenses - Non Reimbursable | Expense | Property operating costs the owner bears | Real Estate Taxes Non Rec; Utilities Non Rec; Repairs and Maintenance Non Rec |
| Admin & Corporate Costs | Expense | Owner-level costs below NOI | Asset Management Fee; Legal Fees; Marketing; Leasing Cost Expense |
| Projects Expense | Expense | Project spending that is expensed | Projects Expense |
| Purchase Costs Expense | Expense | Acquisition costs that are expensed | Purchase Costs Expense |
| Purchase & Sale | Expense | Costs of selling a property | Sale Costs |
| Financing & Tax | Expense | Interest and taxes | Interest Expense; Income Tax; Finance Cost Expense; Shareholder Loan Interest |
| Accounting Items: Expenses | Expense | Non-cash and closing items | Depreciation; Amortization; Income Summary; Write-Ups & Write-Downs |
Balance sheet sections¶
| Section | Type | What belongs here | Credence Chart examples |
|---|---|---|---|
| Cash | Asset | Bank and cash accounts | Cash |
| Current Assets | Asset | Short-term assets other than cash | Escrow Funds; Accounts Receivable; Prepaid Expenses |
| Capital Expenses | Asset | Capitalized improvements and leasing costs | Tenant Improvements; Leasing Commissions; Capital Expenditures |
| Purchase & Sale | Asset | The property's acquisition basis | Buildings; Purchase Costs |
| Finance Costs | Asset | Capitalized loan costs | Financing Cost Assets |
| Long-Term Assets | Asset | Other long-term assets | Construction in Progress (CIP); Other Long Term Assets |
| Accounting Items: Assets | Asset | Contra and investment accounts | Accumulated Depreciation; Investment in Subsidiaries |
| Intercompany | Asset or liability | Balances due from or to related properties or entities | Intercompany |
| Current Liabilities | Liability | Short-term obligations | Accounts Payable; Accrued Expenses; Security Deposits; Prepaid Rent; VAT / Sales Tax |
| Long-Term Liabilities | Liability | Loans and other long-term obligations | Mortgage; Balloon Payment; Loan Amortization |
| Shareholder Loan | Liability | Loans from shareholders | Shareholder Loan; Accrued Shareholder Interest |
| Accounting Items: Liabilities | Liability | Non-cash liabilities | Deferred Tax Liability |
| Equity Flows | Equity | Contributions and distributions | Equity Contribution; Income Distribution; Capital Distribution; Promote |
| Equity Valuation | Equity | Equity value | Equity Value |
| Accounting Items: Equity | Equity | Closing and retained balances | Retained Earnings |
How sections drive subtotals¶
Subtotals add up whole sections. Moving an account to another section moves its amounts into or out of these lines.
Income statement
| Subtotal | Sections included |
|---|---|
| Total OpEx | Both Operating Expenses sections |
| Net Operating Income | Rental Income, Other Income, both Operating Expenses sections |
| EBITDA | Net Operating Income sections, Admin & Corporate Costs, Projects Expense |
| Earnings before Accounting Items | EBITDA sections, Financing & Tax |
| Net Income | Earnings before Accounting Items sections, Accounting Items: Expenses |
Net Income also includes typed activity shown in Unmapped. Purchase Costs Expense and expense-side Purchase & Sale appear in Total Expenses and in the cash flow subtotals below, but not in Net Income.
Cash flow
| Subtotal | Sections included |
|---|---|
| Working Capital | Cash, Current Assets, Current Liabilities |
| Unlevered Cash Flow | Net Operating Income sections, Purchase & Sale, Capital Expenses, Admin & Corporate Costs, Projects Expense, Purchase Costs Expense |
| Cash Flow post Interest & Tax | Unlevered Cash Flow sections, Finance Costs, Financing & Tax |
| Total Funding Sources | Working Capital sections, Intercompany, Equity Flows, Shareholder Loan, Long-Term Liabilities, Accounting Items: Liabilities |
| Cash flow from operations | Net Income, Accounting Items: Expenses, Current Assets, Current Liabilities, Intercompany |
| Cash flow from investing | Purchase & Sale, Capital Expenses, Long-Term Assets, Finance Costs |
| Cash flow from financing | Equity Flows, Long-Term Liabilities, Shareholder Loan |
Equity Valuation, Accounting Items: Equity, and Accounting Items: Assets appear on the balance sheet and are not part of these subtotals.
Choosing a report classification¶
Leave classification blank unless the account holds one of the items below. A classification marks the account for a specific calculation; it does not move the account to another folder. Many accounts can share a classification. For example, two mortgage accounts can both be Debt, and both count toward the loan balance while staying separate lines on the balance sheet.
| Classification | Typical section | Used for |
|---|---|---|
| Cash | Cash | Beginning and ending cash on cash flow reports; cash is left out of the cash movements themselves |
| Escrow | Current Assets | Working capital lines on cash flow reports, separate from Cash |
| Accounts receivable | Current Assets | Working capital lines; ledger detail can hide fully settled invoices |
| Prepaid expenses | Current Assets | Working capital lines |
| Other short-term assets | Current Assets | Working capital lines |
| Accounts payable | Current Liabilities | Working capital lines; ledger detail can hide fully settled invoices |
| Accrued expenses | Current Liabilities | Working capital lines |
| Prepaid rent | Current Liabilities | Working capital lines |
| Security deposits | Current Liabilities | Working capital lines |
| Sales tax / VAT | Current Liabilities | Working capital lines |
| Income tax payable | Current Liabilities | Working capital lines |
| Other short-term liabilities | Current Liabilities | Working capital lines |
| Intercompany | Intercompany | Ledger detail splits and filters activity by counterparty property |
| Debt | Long-Term Liabilities | Loan balances in portfolio and debt metrics |
| Equity basis | Equity Flows | Equity contributed in portfolio and equity metrics |
| Purchase price | Purchase & Sale (asset) | Property purchase price |
| Purchase costs | Purchase & Sale (asset) | Property purchase costs; portfolio closing costs |
| Financing cost assets | Finance Costs | Portfolio closing costs |
| Capital expenditures | Capital Expenses | Property and portfolio CapEx |
| Project expenses | Projects Expense | Portfolio CapEx |
| Tenant improvements | Capital Expenses | Property and portfolio lease costs |
| Leasing commissions | Capital Expenses | Property and portfolio lease costs |
| Rental revenue | Rental Income | Budget lines projected as Rent |
| Absorption and turnover vacancy | Rental Income | Budget lines projected as Absorption |
| Free rent | Rental Income | Budget lines projected as Free Rent; identifying free-rent lease charges |
| Vacancy and credit loss | Other Income | Write-offs in management fee calculations |
| Income summary | Accounting Items: Expenses | Year-end closing; excluded from reports that leave out closing entries |
Portfolio and property metrics, lease and budget calculations, and management fees read classifications from the Credence Chart through each account's mapping. Statements and cash flow reports read them from the chart used as the outline. If your own chart is a statement outline, classify its accounts and also map them to the Credence Chart so both kinds of calculation find them.
Permissions¶
Marking a chart as a statement outline and editing report sections and classifications requires chart add or change access, the same access used to edit the chart's accounts. The Credence Chart is maintained by Credence and cannot be edited.
Common Scenarios¶
- Single shared chart, own statements: All properties use one chart numbered
1000–9999. Give every account a type and a fitting section, then turn on Statement outline. Statements for those properties use your account numbers and names in your outline. Map the accounts to the Credence Chart as well if you use portfolio metrics. - Recoverable and non-recoverable repairs: Put
6100 Repairs – Recoverablein Operating Expenses - Reimbursable and6150 Repairs – Ownerin Operating Expenses - Non Reimbursable. Both count in Total OpEx and NOI, and the statement shows them in separate folders. - Asset management fee: Put it in Admin & Corporate Costs, not Operating Expenses. It reduces EBITDA but not NOI.
- Two loans: Put both mortgage accounts in Long-Term Liabilities and classify both as Debt. The balance sheet shows two lines; the loan balance adds them together.
- Capitalized leasing costs: Put tenant improvement and leasing commission assets in Capital Expenses and classify them as Tenant improvements and Leasing commissions. They appear in investing cash flow and in lease-cost metrics.
- Outline unavailable on a report: The picker shows
Owner Statement (unavailable: 3 accounts not mapped on Pruitt). Open the Pruitt chart, choose Fix next to Owner Statement on the Outlines tab, map the listed accounts, and save. The outline becomes selectable for Pruitt's properties. - Designation refused: Turning on Statement outline lists
2300, 2310. Those accounts have no section, or one that doesn't fit their type. Assign fitting sections and save again; deactivating an account does not exempt it.