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How does the settlement take place?

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Settlement is the mechanism for associating payments with entries (see Settlement in JustOn Cash Management). Depending on which party has triggered the payment operation – the merchant using JustOn Cash Management features or the customer –, the settlement will take place in two different ways.

System-Initialized Payment Operation

In a rough outline, the settlement process for a system-initialized payment operation takes place as follows:

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When initializing the payment transaction for an open entry via a connected bank account (using SEPA direct debit) or a payment provider (using the payment page), JustOn Cash Management creates a pending payment record – specifying a unique ID and related to the entry.

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JustOn Cash Management gets information from the bank or payment provider about the executed payment/refund transaction, creating a corresponding bank statement item or payment notification. Using the unique ID, JustOn Cash Management can relate the incoming information with the pending payment record.

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Associating the matching bank statement item or payment notification, JustOn Cash Management completes the settlement. It sets the payment record to Collected and, consequently, the related entry to Balanced.

Payer-Initialized Payment Operation

For a payer-initialized payment operation, the settlement process looks a bit different:

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With payment transaction executed on the payer's discretion, like a bank transfer, JustOn Cash Management retrieves information about a collected payment without immediate matching criterion.

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JustOn Cash Management proceeds to execute a payment matching operation: it compares the bank statement item with open entries (or accounts), looking for matching data like customer number, statement number or amount.

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Once successfully matched, JustOn Cash Management relates the payment (as produced from the bank statement item) with the corresponding entry. It sets the related entry to Balanced, completing the settlement.