Receivables¶
A receivable is a charge issued to a tenant that Credence tracks through approval and collection. It represents a payment due from a tenant to a property, contains high-level information about the agreement, and specifies financial line items via charge items.
Each receivable has:
- A lease (tenant), dates (issued, due), and an accounting period
- One or more charge items — line-level amounts tied to an income or expense account
Until a receivable is approved, it does not affect the ledger. Once approved, Credence creates the associated accounting entries.
Workflow Statuses¶
| Status | Description |
|---|---|
| Draft | Created but not yet approved. Can be fully edited. Does not affect the ledger. |
| Approved | Approved and posted to the ledger. Informational edits can change the name, notes, due date, and charge descriptions. |
The lease and lease-charge assignments are protected after approval because they affect financial attribution, VAT, and accruals. The sent date is also protected because it determines currency conversion. These values cannot change through informational editing.
Payment Statuses¶
| Status | Description |
|---|---|
| Unpaid | No payments have been matched to this receivable yet. |
| Partially Paid | Some payments matched, but a balance remains. |
| Paid | Fully collected. |
| Written Off | Remaining balance written off as uncollectable. |
| Cancelled | Receivable reversed and removed from active tracking. |
Approving a Receivable¶
Approving a receivable commits it to the ledger. Credence:
- Sets the workflow status to Approved
- Creates a bundle with the accounting entries:
- DR Accounts Receivable for the total amount
- CR Income/Revenue account for each charge item
- Creates any related accrual bundles for deferred charges (for example quarterly or yearly rent recognized monthly)
Cancelling a Receivable¶
Cancelling reverses the receivable's financial impact:
- Sets payment status to Cancelled
- Reverses all related bundles posted at approval, including accrual (deferred recognition) bundles
Only approved, unpaid receivables can be cancelled.
Writing Off a Receivable¶
A write-off closes a receivable that will not be collected in full. Credence posts a bundle using the current accounting period:
Write-Off = DR Write-Off account + CR Accounts Receivable (for the remaining balance)
Write-off is available for approved receivables with Unpaid or Partially Paid payment status.