Overview

Credit is a type of financial records that are applicable only when a balance is tracked for each customer in addition to transactional invoices and payments. Changes that impact the balance are considered credits.

Specifically, changes that credit the balance are considered credit issuance. Those that debit the balance are considered credit applicable. In some cases, where the issuance and application happens at the same time (e.g. a correction to an unpaid invoice), Leapfin considers the records as credit adjustment.

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Discount vs Credit

Discount and Credit are similar in that they both reduce the amount of invoice. Sometime teams refer to those terms interchangeably without consistent definitions.

On Leapfin Platform, discount and credit are distinguished by whether its financial impact should be tracked independently of the invoices. If yes, then we consider it a Credit, otherwise a Discount.

For example, merchant offers $10 off for customer to use in future invoice.

• If merchant considers this $10 as money owned to customer, then Leapfin will create a Credit.
• If merchant considers this $10 has no value until it is applied to an invoice, then Leapfin will create a Discount.

Create a Credit

The following fields are required

• objectType: type of financial record. For Credit, the value is "credit".
• id: unique identifier of this record. This is external id received by Leapfin.
• amount: amount of the credit. The amount should be non-negative. The direction of the credit (i.e. the financial impact of the credit amount) is derived from the type field.
• currencyCode : 3-digit ISO code of amount field, e.g. “USD”, "GBP", etc. This is the primary currency of this record.
• date: the date-time of when this credit was issued or applied.
• type: the type of credit. Acceptable values are:
  • "issuance": credit is issued to customers.
  • "application": credit is consumed as payment to an invoice.
  • "adjustment": credit is given to an unpaid invoice to represent an adjustment.

The following fields are optional but are commonly needed for creating journal entries

• description: description of the Credit.
• startDate: the date-time when the credit becomes available.
• endDate: the date-time when the credit expires.
• exchangeRates: a list of exchange rates used to calculate currency conversions
  • currencyCode: 3-digit ISO code, e.g. “USD”, "GBP", etc. This is the target currency of this record
  • rate: conversion rate from primary currency to target currency. i.e. amount in primary currency * rate = converted amount in target currency.
• links: directional relationships pointing from this record to other financial records.
  • objectType: type of the target financial record, e.g. "line-item"
  • id: unique identifier of the target financial record
• customFields: additional fields (i.e. key-value pairs) related to this record

Sample Data

{
  "objectType": "credit",
  "id": "credit_001",
  "type": "issuance",
  "amount": 10,
  "currencyCode": "USD",
  "description": "a sample credit issuance",
  "date": "2021-01-16T11:28:31",
  "startDate": "2021-01-20T00:00:00",
  "endDate": "2022-01-19T00:00:00",
  "exchangeRates": [
    {
      "currencyCode": "EUR",
      "rate": 0.84
    },
    {
      "currencyCode": "GBP",
      "rate": 0.73
    }
  ],
  "links": [
    {
      "objectType": "line-item",
      "id": "lineitem_001"
    }
  ],
  "customFields": {
    "field1": "value1",
    "field2": "value2"
  }
}

Query a Credit

Credit records are stored in VW_FT_CREDIT table. It can be accessed via Snowflake Data Sharing and Access.