Credit balances and overpayments

What a credit is

A credit is money the business holds on a tenant's behalf. It arises from an overpayment, from money received before a charge exists, or from a goodwill gesture granted by the landlord or manager.

It is held as a liability in its own account, separate from rent and never counted as income while it is held.

The balance is the sum of its movements

The credit balance is calculated from the movements behind it rather than stored as a figure. A cached total that drifts from its own history is worse than no total, because it is believed.

Using a credit

Credit can be applied to an open charge or to rent. No cash moves; the credit is drawn down and the balance owed falls.

You cannot apply more than is held, or more than is outstanding on the item. Both are refused with the actual figure.

Refunding a credit

Refunding money back to a tenant is stricter than applying it, because it moves money out of the business. It requires accounting rights and a written reason, and the reason goes on the audit trail.