Introducing liability accounts for credit clients! To enhance credit monitoring and repayments, we're creating a new bank account called "VOLOPAY-CREDIT" in your accounting software. This account will handle all credit line transactions, simplifying the management of credit alongside regular banking activities. We've also updated your credit ledger to reflect liabilities, improving visibility and control. Our goal is to streamline your accounting process and provide you with a clearer view of credit-related transactions.
Changes in Accounting Software
When you connect to the software as a credit client, the following accounts will be created:
a. VOLOBANK: This existing account will continue to handle all your regular banking transactions, just as it did before. Your credit repayments will be linked to this account.
b. VOLOPAY-CREDIT: A new account, "VOLOPAY-CREDIT," will be created exclusively for transactions related to credit lines. This account will help you keep track of all your credit-related activities.
How Transactions Are Synced
To ensure accurate bookkeeping and reporting, it's important to understand how transactions will be synced with the newly created accounts:
a. VOLOBANK: All non-credit-related transactions will continue to sync automatically with the VOLOBANK account, just as they did before.
b. VOLOPAY-CREDIT: Transactions involving credit lines, including credit usage and repayments, will be exclusively synced with the VOLOPAY-CREDIT account. This ensures that your credit-related transactions are properly recorded and separate from your regular banking activities.
Changes on the Platform
In addition to the accounting software changes, we have also made enhancements to your ledger to make it easier for you to understand how your credit line works. Here's what you need to know:
The balance column in your credit ledger has been replaced by a liability column. This change provides a clearer representation of your credit utilisation. The liability column will track your responsibility to repay Volopay at the end of the billing cycle.
Your liability balance will start at 0 and increase as you spend from your credit line.
When you make repayments, the liability balance will decrease, reflecting your progress in repaying the borrowed amount.
This change will help you monitor your credit utilisation and understand your repayment obligations more effectively.
We believe that these changes will significantly improve your accounting experience and make managing credit transactions easier and more transparent. If you have any further questions or need assistance, please don't hesitate to reach out to our support team.