How does the settlement take place?
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:
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 an open payment record (Issued or Pending) – specifying a unique ID and related to the entry.
JustOn Cash Management gets information from the bank or payment provider about the executed payment 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.
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:
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.
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.
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.