diff --git a/app/controllers/homies_controller.rb b/app/controllers/homies_controller.rb
index 38fc39e..8415da4 100644
--- a/app/controllers/homies_controller.rb
+++ b/app/controllers/homies_controller.rb
@@ -26,6 +26,19 @@ class HomiesController < ApplicationController
     json_response(Homie.cash(importance))
   end
 
+  def settle
+    homie_id = params[:homy_id].to_i
+    homie = Homie.find(homie_id)
+
+    if homie.settle
+      json_response []
+    else
+      error_response :bad_request
+    end
+  rescue StandardError
+    error_response :bad_request
+  end
+
   private
 
   def homie_params
diff --git a/app/models/homie.rb b/app/models/homie.rb
index f09ff31..16aab9c 100644
--- a/app/models/homie.rb
+++ b/app/models/homie.rb
@@ -10,4 +10,18 @@ class Homie < ApplicationRecord
       { homie: homie, amount: total }
     end
   end
+
+  def settle
+    total = MoneyMove.where(homie_id: id).all.sum(:amount)
+    all_money_moves = MoneyMove.where(homie_id: id).all
+
+    transaction do
+      all_money_moves.destroy_all
+
+      MoneyMove.create_settle_record(id, total)
+    end
+    true
+  rescue StandardError => e
+    false
+  end
 end
diff --git a/app/models/money_move.rb b/app/models/money_move.rb
index 41a16e1..50b7e7b 100644
--- a/app/models/money_move.rb
+++ b/app/models/money_move.rb
@@ -13,6 +13,16 @@ class MoneyMove < ApplicationRecord
     end
   end
 
+  def self.create_settle_record(homie_id, amount)
+    new_desc = "Settled on #{DateTime.now.utc}"
+    settle_record = MoneyMove.new(
+      homie_id: homie_id,
+      amount: amount,
+      description: new_desc
+    )
+    settle_record.save
+  end
+
   class << self
     private
 
diff --git a/config/routes.rb b/config/routes.rb
index 19d93cc..73f5e0e 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -8,6 +8,7 @@ Rails.application.routes.draw do
         collection do
           get 'cash'
         end
+        delete 'settle'
       end
     end
   end