Only Lent Person should be able to Settle Up from his account
When the bills are settled up, it should be done from the person who lent the money and not from the person who owes the money coz this may lead to fraud settlement
We built Splitwise with the intention of keeping everyone on the same page with shared expenses, so anyone can add, edit, or record payments. There is a record of all of this kept in Recent Activity, so if there is a dispute, you can always reference the Recent Activity page. You also have the ability to delete the payment even if it was not recorded by you.
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Rohitha commented
Often a person who owes money can record a cash payment without actually paying the cash. So it would be great if you include an option in settings where people can choose if both parties can record cash payments or if only the person who is owed can record cash payments.
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Tarun commented
Some of the people are using Settleup option without even paying.That is creating some mess.Settleup authority should not be given to everyone.When they want to settle up . Atleast it should display concerned person whether to settle up or not