Overview
A lease credit reduces the balance your tenant owes without actually collecting payment. There are several cases where you might need to issue a credit on a lease. You might give a one-time rent discount, need to record that you are already holding a lease deposit, or write off a lease balance you know the tenant will never pay.
The Steps
From the main menu, click on Leases and then click on Active Leases.
Find the lease you want to add a credit for and click on it. You can either sort the list by the various columns and filters or use the Search leases search bar.
Click on the Transactions tab and then the Issue Credit button.
Enter the following information:
Category: choose the account for the credit.
If you are reducing rent for a one-time discount or writing off rent you won't be collecting, choose Rent.
This reduces the tenant's balance and the amount of rent revenue you collected on your Profit and Loss report. You could also do this for Late Fees or any other revenue account.
If you are paying a tenant for services rendered by reducing their rent charge, you can actually choose an appropriate expense account for the credit.
If you don't see the expense account in the drop-down menu, you will need to edit the account in your chart of accounts to make it available for lease charges.
This will show that you reduced the tenant's balance and will offset the revenue collected by increasing the expense account to record this expense transaction on the Profit and Loss report.
If you are issuing a credit to record a past payment that you already have in the opening balance of your bank account, choose Opening Balance.
Description: enter an optional explanation for the credit. What you enter here is what the tenant will see on their lease ledger in the tenant portal. If you leave it blank, the tenant will just see the word “Credit.” You will also see it in the “Memo” column in relevant reports.
Amount: enter the amount for the credit.
Date Issued: change the date for the credit if needed.
Add Line Item: use this link to add additional credit items if needed. You could also create separate credits for each line item.
Add memo: add an optional note for your reference when reviewing the credit later.
Add any relevant files (optional) by dragging the file into the window or using the Click Here link to upload. Add any relevant files (optional) by dragging the file into the window or using the Click Here link to upload. You also have the ability to Share files with the tenants if you click the box. This is a good way to share files like receipts or documents.
Click Save to finish.
Good work! You can review credits on the Transactions tab of a lease.
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