What is settlement?
Settlement is the controlled grouping of eligible financial transactions by period, context, and currency, followed by calculation of gross value, fees, refunds, and net value. A successful payment does not always appear immediately in every report because the settlement window can differ from payment time.
Components
- Clear start and end period.
- Included business and branches.
- Currency, without combining currencies into one net value.
- Eligible successful transactions.
- Linked refunds and adjustments.
- Documented fees or deductions.
- Net settlement and state.
States
A settlement can be preparing, ready for review, approved, executed, or requiring attention. Every transition should record who made the decision and why, without rewriting original payment details.
Reading the report
Begin with transaction count and gross value, then review refunds and fees, and finally net value. Inspect excluded or pending items next; these often explain the difference between period sales and settlement net.
After settlement
Settlement does not replace reconciliation. Reconciliation proves that transaction records, settlement, and the corresponding transfer or entry agree—or that differences are explained. Continue to Financial reconciliation.