Ledger¶

Overview¶

The ledger is Credence's general journal. Property activity posts as balanced bundles of debit and credit ledger entries. Until a bundle is approved (posted), it does not affect account balances or reports.

Use Ledger to review the journal, Draft Bundles to clear imported or staged drafts in bulk, and Add Bundle for manual journal entries. System workflows such as payable approval, receivable approval, bank matching, accruals, and fixed-asset posting also create bundles.

Period boundaries on Close Books control which accounting months accept new or reversing activity.

Definitions¶

Rules and Behavior¶

Bundle lifecycle¶

A bundle becomes posted when it is approved. Approval records the posting time and includes the bundle in active ledger balances.

Manual journals versus system activity¶

• Manual Form and Template Upload bundles are created by users (Add Bundle or import). On those origins you can optionally link either a payable or a receivable for reference—not both.
• Other origins are created by Credence when you approve payables or receivables, match bank transactions, post accruals, capitalize fixed assets, reverse or reclass, or run related processes. Prefer correcting the source object (invoice, match, and so on) when the bundle is tied to one.

What you can edit¶

Deleting is allowed for drafted or rejected bundles that are not waiting on a workflow step. Posted activity is corrected with reverse or reclass, not delete.

Approving (posting)¶

Credence allows approval only when all of the following hold:

• Status is Drafted
• The bundle and its property are not locked
• The accounting period is open for the user (see Close Books)
• There are at least two valid ledger entries
• Total debits equal total credits
• The bundle amount (sum of debits) is not negative

Users with change permission on the bundle can approve one at a time. Users with bulk approve bundles can approve many drafts from Draft Bundles. Bulk delete of drafts requires delete permission on each selected bundle.

Reversing¶

Reverse a posted (active) bundle when the original entry should come off the books. Credence creates a new posted reversal bundle that:

• Keeps the same property, accounts, intercompany links, and related invoice or transaction references
• Swaps debit and credit on each line
• Uses the original accounting period unless a reclass supplies a different open period
• Marks the pair so each bundle can be reversed only once

You cannot reverse a bundle that is already reversed, that itself is a reversal, that is locked, that is not active, or that falls in a closed period for you.

If the activity came from a bank allocation, unallocate or rematch the transaction rather than relying on reverse alone so the bank feed and books stay aligned.

Reclassing¶

Reclass when coding or property assignment on a standalone posted bundle needs to change. Credence:

1. Builds an adjustment bundle from your corrected header and lines
2. Posts a reversal of the original in the adjustment's accounting period
3. Posts the adjustment

Reclass is blocked when the bundle is linked to a payable, receivable, or bank transaction—manage those objects instead (for example, reclass the payable). The original and adjustment properties must share the same currency; otherwise reverse manually and add a new bundle on the correct property.

The adjustment period defaults to the later of the original period and the property's earliest open month under Close Books.

Period controls¶

Saving, approving, and reversing respect each property's open posting window. Past closed months can still be used by users with Post to Closed Period; future closed months and locked properties block everyone. Details are in Close Books.

Line and header validations¶

• Each ledger line needs an account from the property's chart of accounts.
• A line may have a debit or a credit, not both, and not neither.
• Debit and credit amounts are non-negative.
• Booking to the default intercompany account requires a related property or entity; non-intercompany accounts cannot carry an intercompany property.
• A linked payable must include at least one charge on the bundle's property.
• A linked receivable's lease must be on the bundle's property.
• A bundle cannot link both a payable and a receivable.

Calculation Details¶

Balance check (required to post):

Sum of ledger-entry debits = Sum of ledger-entry credits

Bundle amount (shown in lists and filters):

Bundle amount = Sum of ledger-entry debits

Reversal lines (full reverse):

Original debit  → Reversal credit (same amount)
Original credit → Reversal debit  (same amount)

Active ledger impact: Only bundles in Approved status with a posting time and accounting period contribute to posted balances. Drafts and rejected bundles do not.

Common Scenarios¶

• Month-end adjusting entry: Add a manual bundle for the property, enter at least two balanced lines (for example debit Expense, credit Accrued Liabilities), save as draft, then approve into the open month.
• Imported drafts to clear: Open Draft Bundles, select the drafts that are ready, and bulk approve (or bulk delete ones that should not post).
• Wrong account on a manual journal: If the bundle is already approved and not tied to an invoice or bank match, reclass it—Credence reverses the original and posts your corrected lines. If it came from a payable, reclass the payable instead.
• Undo a posted entry in an open month: Reverse the bundle so Credence posts the offsetting entry. Confirm Close Books still leaves that month open for you.
• Find activity in the journal: On Ledger, filter by period, posted yes/no, whether the row is part of a reversal, or search by name and description. Related payable or receivable references appear when the bundle is linked to an invoice.