By integrating Credit Coop with Entendre, you can streamline the accounting and management of your Credit Coop transactions, ensuring seamless financial reporting and enhanced transparency.
Integration Flow
To set up and use the Credit Coop integration in Entendre, follow these steps:
1. Add Line of Credit Address as an Internal Wallet
Navigate to the Sources page in Entendre.
Add your Credit Coop spigot address as an internal wallet, or internal wallet that interacts with Credit Coop loans
2. Connect Credit Coop Integration
Go to the Integrations page in Entendre.
Click "Connect" on the Credit Coop integration tile.
Add the line of credit address provided by Credit Coop.
3. View Credit Coop Transactions
Transactions will be imported from the Line of credit and you will see repayments of principal and interest, you will also see borrow transactions, reserve changes and more.
4. Understanding reserve changes
Reserve changes can vary based on the direction of the reserve change. Reserve changes occur when there are overpayments to loans and can either be applied to a future repayment or returned to the borrower.
Positive: Indicates an increase in the reserve balance.
Negative: Requires clarification:
If returned to the borrower, it is considered a Sweep (To address is the borrower's address).
Otherwise, it is a repayment (To address is the line of credit).
6. Create Template Line Variables
Set up template line variables for:
Interest Amount
Principal Amount
7. Add Rule Conditions for Credit Coop
Create a rule with the following conditions:
Is Credit Coop Transaction: True
Transaction Type: Borrow, Repayment, Reserve Change.
[Insert Screenshot of Rule Setup for Credit Coop transactions here]
Supported Transaction Types
Entendre supports the following Credit Coop transaction types:
Reserve change (negative/positive)
Repayment (interest/principle)
Borrow
[Insert Screenshot of Supported Transaction Types in Entendre here]
Automating Credit Coop Accounting
By integrating Credit Coop with Entendre, you can automate journal entries for transactions. Examples include:
Repayment Transactions
Debit: Interest Expense or Loan Principal Account
Credit: Line of Credit Payable Account
Reserve Changes
Positive Reserve Change:
Debit: Reserve Account
Credit: Line of Credit Payable Account
Negative Reserve Change:
If a Sweep:
Debit: Line of Credit Payable Account
Credit: Borrower’s Asset Account
You can then create ledger posting rules to check for the Credit coop transaction types, along with other specific conditions (i.e. direction, amount, to/from address, etc.) automate post journals with Credit coop specific templates.
Benefits of Credit Coop Integration with Entendre
Seamless Accounting: Automate journal entries for all Credit Coop transactions. You can use our journal entry templates and ledger posting rules.
Comprehensive Tracking: Manage line of credit transactions, repayments, and reserve changes effortlessly.
Transparency: Sync all data to your accounting system (e.g., Xero, QuickBooks, NetSuite) for accurate financial reporting.
This integration enables businesses to efficiently track and account for their Credit Coop activities, ensuring clarity and precision in financial management. For further assistance, reach out to our support team or consult Credit Coop's technical documentation.