Using the Settlements window, you can also manage your settlement process. You can pre-authorize future settlements, change the default settlement details for a deal, split a settlement between different accounts or parties, or net all the settlements between your company and another party. In addition, you can generate payment instructions and transmit payments electronically.
Use the Settlements window to identify, query, validate, and authorize your settlements. You cannot initiate payment instructions until you authorize settlements for the deals. For Exposure transactions, you also cannot generate journal entries until you authorize the settlements for the transaction.
Set up default settlement accounts. See: Default Settlement Accounts.
Set up default settlement actions. See: Default Settlement Actions.
In the Settlements window, select the company for which you want to authorize settlements.
Enter the date on which you expect the settlement to occur in the Due/Settle Date field.
If you want to authorize settlements that occurred on or before the Due/Settle Date, check the Unauthorized Prior to Due Date check box.
In the Transaction region of the window, indicate the type of transactions you want to display. Select the Validated option to display only validated transactions. Select the Unvalidated option to display only unvalidated transactions. Select the Both option to display all transactions.
In the Settlement region of the window, indicate whether the type of settlements you want to display. Select the Authorized option to display only authorized settlements. Select the Unauthorized option to display only unauthorized settlements. Select the Both option to display all settlements.
In the Settlement Summary region, indicate the type of settlements you want to authorize. Select the Payment Only option if you want to validate only payment settlements. Select the Receipts Only option to validate only receipt settlements. Select the Both option to validate all settlement types.
If you want to view or change a specific transaction before you authorize it, select the settlement and choose the Maintain Settlements button. The Settlement Actions window appears. Modify the settlement information in the Settlement Actions window as needed. Note: If you select one of the split settlement transactions and choose Maintain Settlements, you will first see the split settlement transaction with the lowest settlement number in the split group. To navigate to other settlements that are a part of the same group, you select the down arrow key or page down key.
Check the Authorized field to authorize the settlement. Your user id and the current system date automatically appear in the Authorized By and Settlement Date fields.
Save your work.
After you authorize your settlements, you can net them and choose a payment method.
You can net multiple cash flows for any transactions that have the same currency, counterparty, and value date. Net your payments when you have several transactions with a counterparty. For example, if you owe a counterparty $100,000 and the counterparty owes you $50,000, you can net those transactions and issue only one payment of $50,000, instead of generating a payment for $100,000 and a receipt for $50,000.
Authorize settlements. See: Authorizing Settlements.
In the Netting region of the Settlements window, define how you want to group your settlements by checking one of the following check boxes:
Netoff: Calculates the total payments and receipts as either one payment or one receipt.
Sum: Produces a total for all receipts and a total for all payments.
None: Does not perform any netting. Each amount is handled separately.
Not set: Each amount is handled separately. Select this option if you haven't grouped your settlements yet.
If you want to remove the a settlement grouping, select the row of the grouped settlement in the Maintain Details area of the window and delete the value in the Group Ref field.
Choose one of the following payment methods for the settlement:
Check: Enable the check box if you are using a check to pay the settlement.
Direct Debit: Enable the direct debit check box if the counterparty will take the payment directly from your company bank account.
EFT: Enable the EFT check box if electronic payment information needs to be created for the settlement.
The settlement amounts appear in the Maintain Details region of the window.
Save your work.
Use the Split Settlements window to divide your settlements between one or more companies or counterparties, or between one or more bank accounts. You cannot change the total settlement amount by splitting it. If you split a settlement, the sum of the split amounts must equal the original amount before the split.
In the Settlements window, select the settlement that you want to split and choose the Maintain Settlements button. The Maintain Settlements window appears.
Choose the Split Settlements button. The Split Settlements window appears.
For each part of the settlement split, do the following.
In the Define Settlement Splits region, enter the amount of the settlement that you want to split.
Select the party whom you want to receive the split part of the settlement.
In the Settlement Account field, select the account that you want to use for the split part of the settlement.
Enter any comments about the split as needed.
Save your work.
Use the Settlements window to pre-authorize future settlements.
In the Due/Settle Date field, enter a future date for which you want to pre-authorize your settlements.
Authorize your settlements. See: Authorizing Settlements.
You can use the Next 14 Days region of the Settlements window to view a list of settlements for the next 14 dates on which settlements occur from a specified date.
In the Start Date field of the Next 14 Days region of the Settlements window field, enter a date from which you want to view a list of your settlements. Choose the Find Next 14 Days button. A list of settlements appears.
Use the Vouchers window to record settlement vouchers for your reference.
In the Settlements window, select the settlement for which you want to create a voucher. Choose the Maintain Settlements button. The Maintain Settlements window appears.
Choose the Vouchers button. The Vouchers window appears.
In the Reference field, enter a reference number for the voucher.
In the Amount field, enter the amount for the voucher.
In the Comments field, enter any comments about the voucher.
Save your work.