A credit is a financial transaction that reduces the amount of money owed by a resident without increasing a bank balance or accepting payment.
For example:
- Since the resident repaired the concrete outside of the unit, she was offered a rent concession in the form of a credit.
- Frank was not likely to pay the remainder of his balance, so a credit was used to write off the bad debt.
- When I first set up my books in Buildium, I issued a credit to carry over the security deposit.
How to add a tenant creditShow
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- Navigate to Rentals > Rent roll.
- Click the name of the tenant that you would like to add a credit for.
- From the lease summary page, click the Financials tab.
- Click Issue credit.
- Add information about the credit.
- There are 3 different types of credit actions you can choose from:
- Issue credit to waive unpaid charges - this credit should be used when you are waiving a fee and do not want any income or expense transactions to show on the property's books for the transaction. This is often the choice used when waiving late fees.
- Issue credit in exchange for goods or services or to write-off unpaid charges - this credit should be used if a tenant does work in exchange for a credit on any type of fee. This credit will show an income transaction offset (or zeroed out) by an expense transaction on the books of the property.
- Issue credit for payments previously deposited - this credit should be used to represent a payment made by an owner that is already represented in your bank balance. For example, when you're just starting with Buildium, use this credit action to represent any deposits or money held that is included in your opening bank balances.
- Enter a detailed memo.
- In the Apply credit to balances section, enter the account type the credit will apply to. For example: If you're giving them a credit on late fees, the account type would be late fee income.
- Click Save credit or Issue another credit.
How to edit a tenant creditShow
- Navigate to Rentals > Rent roll.
- Click the name of the tenant who you want to edit a credit for.
- From the lease summary page, click the Financials tab.
- Click the transaction date of the credit that you'd like to edit.
- Click Edit credit.
- Make any necessary changes, then click Save credit.
How to delete a tenant creditShow
- Navigate to Rentals > Rent Roll.
- Click the name of the tenant who you want to delete a credit for.
- From the lease summary page, click the Financials tab.
- Click the transaction date of the credit you want to delete.
- Click Edit credit.
- Click Delete credit, then confirm the deletion.
| Article #: | 112375 |