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Settlement

Module Guide: Settlement (Deposit Settlement)

Module Location

Finance > Settlement > Settlement

Module Objective

The Settlement module is used to perform the settlement process, which is to apply or use funds from a customer's deposit/down payment (recorded as a Guarantee) to pay off an outstanding sales invoice. This is the formal accounting process for "using" a down payment to pay a bill.

1. Main View (Settlement List)

The main page of this module displays a list of all Settlement documents that have been created.

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View Explanation & Filters

This page is for viewing the history of settlement transactions that have been performed.

  • Filters: You can search for a specific document by Settlement Number or a date range (Start Date / End Date).

  • Settlement List: The table below will display all documents that match the filters, with columns such as Settlement Number, Account Name, Settlement Date, and Amount.

Button Functions

  • [New]: The primary button to create a new Settlement document.

  • [Print]: To print the details of a selected settlement.

  • [Cancel]: To cancel a settlement document that has already been created.

2. Steps to Perform a Settlement

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Step 1: Create a New Settlement Document

From the Main View, click the [New] button to open the Add Settlement form.

Step 2: Select the Customer

On the form that appears, select the Customer from the dropdown. This will filter the available deposit and invoice documents for that customer only.

Step 3: Select the Deposit to be Used

In the Guarantee section, click [+ Add] then select the deposit or down payment document that will be used for payment. Enter the amount to be used in the Amount Used column.

Step 4: Select the Invoice(s) to be Paid

In the Invoice section, click [+ Add] then select one or more invoices that will be paid using that deposit. Enter the payment amount in the Settlement Amount column.

Step 5: Save and Confirm

  1. Ensure the total Amount Used equals the total Settlement Amount.

  2. After all data is filled in, click [Save] to save as a draft or [Confirm] to finalize the transaction.

Workflow & Integrated Business Process

  • Accounting Impact: After confirmation, this transaction will create a journal to reduce the down payment liability balance and simultaneously reduce the accounts receivable asset balance.

  • Function: This is an important accounting step to officially 'use' a customer's down payment to settle their bill.

Tips & Important Notes

  • This is a primary work tool for the AR (Account Receivable) team.

  • This process ensures that the customer's down payment and receivable balances are always up-to-date and accurate.