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Managing Settlements

JustOn can offset non-related invoices and credits of an account via settlements.

Think of a marketplace scenario: You sell products that are delivered by a participating organization. On the one hand, as you receive the customer's money, you have to pay out the vendor. To this end, you create a credit. On the other hand, you charge the vendor a commission for your brokerage, issuing an invoice. Now you can offset the invoice against the credit, thus settling the invoice and reducing the credit amount.

If set up accordingly, JustOn can settle open invoices or credits automatically with an invoice run. In addition, you can settle a single invoice or credit manually.

Settlement Concepts

Generally, JustOn settles an open invoice against a new credit, and an open credit against a new invoice (also referred to as the settlement target).

Info

For an open invoice or credit to be considered for settlement, its due date must be reached.

The settlement itself is implemented by balances on the open invoice and on the new (target) invoice. JustOn creates the balance of the type Settlement on the new invoice immediately when completing the settlement operation, irrespective of the invoice status (Draft or Open). When the new invoice is finalized (set Open), the open invoice to be settled gets the corresponding balance of the type Clearing, and at the same time, it is set Paid (in case of invoices) or Settled (in case of credits).

■ New invoice balance

Field Value
Type Settlement
Amount <settlement amount>
Related Invoice <settled invoice ID>

■ Settled invoice balance

Field Value
Type Clearing
Amount -1 * <settlement amount>
Related Invoice <new invoice ID>

Info

Invoices that are settled against a draft invoice cannot be settled against another draft invoice. Delete the settlement balance first.

The settled amount does not exceed the balance of the target invoice to avoid an overpayment.

Current Balance Target Balance Settled Amount Notes
-100 150 -100 full settlement of a credit against an invoice
-100 75 -75 partial settlement of a credit against an invoice
-100 -20 - no settlement possible
-100 0 - no settlement possible
0 20 - no settlement possible
100 -150 100 full settlement of an invoice against a credit
100 -75 75 partial settlement of an invoice against a credit
100 20 - no settlement possible
100 0 - no settlement possible
0 -20 - no settlement possible

Manually Executing Settlement

You can settle a single invoice or credit manually, starting from the new (or target) invoice or credit, respectively.

To settle an open invoice:

  1. Open the credit against which you want to settle the open invoice.
  2. Click Settle.
    This displays a list of invoices that can be settled (status Open and due date reached).
  3. Select the invoice to be settled.
  4. Click Settle selected.
    ▶ This creates the settlement balance on the credit.
  5. Click Finalize.
    ▶ This links the target credit with the settled invoice and creates the clearing balance on the settled invoice.

To settle an open credit:

  1. Open the invoice against which you want to settle the open credit.
  2. Click Settle.
    This displays a list of credits that can be settled (status Open and due date reached).
  3. Select the credit to be settled.
  4. Click Settle selected.
    ▶ This creates the settlement balance on the invoice.
  5. Click Finalize.
    ▶ This links the target invoice with the settled credit and creates the clearing balance on the settled credit.

Info

JustOn prints the balances to the invoice PDF, as described in Configuring Balance Table on Invoices.
After the target invoice/credit has been finalized, you may have to generate the PDF for the settled invoice/credit again for the clearing balance to be included.