Settlement and netting review

Settlement records connect a money movement to a payable, a receivable or both. They carry direction, date, amount, method, state and bank reference. A settlement analyst can see whether a transfer is Scheduled, Released, Reconciled or Failed, and can inspect the charge records connected to it. The native release action guards the change from Scheduled to Released and records a Settlement Release receipt. This creates a clear handoff from a prepared payment to a recorded release.

The records also support a manual netting review. For example, two subsidiaries may have charges in opposite directions. Senior Accountant compares the paired payable and receivable amounts, while Settlement Analyst agrees the cash movement that remains after the offset. The analyst records the resulting settlement against the relevant charge records. Finance should agree the netting policy and supporting calculation before releasing funds; the settlement record alone does not make that accounting decision.

• Schedule. Settlement Analyst chooses the direction, method, amount and linked charge before release.
• Release. The native action records the operation receipt and moves the scheduled settlement to Released.
• Reconcile. Finance compares the bank reference and charge balance before marking the movement reconciled.

Choose which person can schedule a transfer and who can use the release action. Agree the cash authority and bank handoff for ACH, wire, check and card methods. Confirm which evidence accompanies the movement, such as remittance advice or a bank statement. The finance team must also decide how a failed release is recorded and when a new settlement may be scheduled.

Define the pairing convention: which payable, receivable, partner reference and amount identify the same intercompany charge. Decide how partial settlement and netting are documented so that the reviewer can reconstruct the result. For cross-currency entity pairs, agree the conversion source and date outside the settlement record and retain the approved calculation with the evidence.

Take an approved payable and its corresponding sent receivable. Settlement Analyst checks the amount owed, chooses an outbound movement and links both charges. The analyst enters the proposed amount and date, then schedules the settlement. Controller or the agreed treasury authority reviews the payment instruction according to company policy. The release action records its result and moves the settlement to Released. Senior Accountant then checks the bank reference, the linked charges and any remaining balance before the movement is treated as reconciled.

Run a second case with only part of the balance settled. The open amount should remain visible on the charge. Run a failed release case as well, so the team knows which receipt and status to inspect before trying again. This rehearsal makes the distinction between the app’s release record and bank confirmation operationally clear.

• Payment Pipeline — Scheduled, released, reconciled and failed movements grouped by state.
• Treasury Payment Register — Dated movements with method, amount and bank reference.
• Settlement Pairs Awaiting Match — Released movements for follow-up against linked charges.

See settlement release and journal to period review.