Settlement of Bank Card Liability

Overview

This article defines the process to settle a bank card liability. Settlements make take the form of an advance payment, a partial settlement or a full settlement.

Navigation

General Ledger > Bank Card Reconcile

Process
 

• Select Bank Account Number from the picklist of Bank Card Accounts. Once selected the following information is displayed for the selected Bank Account:

  • Buttons:

    • Start a Settlement

    • Reconcile

    • Add Interest / Other Charge

  • Bank Card Account information:

    • Company:  The Company associated with the selected Bank Card Account

    • Bank Account Number:  The Bank account number for the selected Bank Card Account

    • Institution:  The name of the Banking institution associated with the Bank Card Account selected

    • Balance:  The current Bank Card Account balance expressed in the Bank Card Account Currency

    • Balance After Settlement:  The expected Bank Card Account balance after the Settlement Pending transactions have been completed

    • Associated GL Account:  The GL account associated with the selected Bank Account

    • Bank Account Name:  The name of the Bank Account as defined by the user in the Bank Account setup program

    • Description:  The description of the Bank Account as defined by the user in the Bank Account setup program

    • Settlement Pending:  The amount for previous settlements raised but where payment (via Payment Selection) has not yet been made.

  •  Bank Card Transaction Buttons:

    • Bank Card Txns

    • Post Bank Card Txns

    • Reverse Transactions
       

• Click Start a Settlement
   

• A Start a Settlement pop up screen will display the Current Balance due and a user will be allowed to enter a:

  • Payment Amount:  The amount to be paid to the Bank Card (can be advance, partial or full payment)

  • Payment Txn Date:  The date upon which the Settlement (Payment Amount) will be recorded in the General Ledger
     

• Click Create Payment to create the Payable transaction for settlement. A payable transaction will be raised against the Bank Card vendor associated with the Bank Account (See Bank Card Account Setup) for the Payment Amount. The vendor can then be paid via the standard Payment Selection process.
   

• Cancel will close the Start a Settlement pop up screen and return to the Bank Reconcile screen
   

To complete the payment / settlement cycle:

• The Payable Transaction for the settlement that was raised / created against the Bank Card Vendor must be posted

• Once the Payable Transaction is posted, the Bank Card Vendor is to be paid via the standard AP Payment Selection process

Once the payment cycle has been completed, the Balance amount will be equal to Balance Amount after Settlement and the Settlement Pending amount will be '0'. Whenever there is a balance in the Settlement Pending field, it indicates that either, the Payable Transaction has not yet been posted, or the payment of the Bank Card Vendor has not yet been completed / posted.



SEE ALSO

Bank Card Processing
Bank Card Setup
Bank Card Transaction Template
Upload Bank Card Transaction
Processing Bank Card Transactions
Voiding of Bank Card Transactions
Bank Card Reconcile