# 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.

![image.png](https://manual.kokola.co/uploads/images/gallery/2025-09/scaled-1680-/1alimage.png)

#### **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**

**![image.png](https://manual.kokola.co/uploads/images/gallery/2025-09/scaled-1680-/VEBimage.png)**

#### **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.