4.1 Initiate Finance Settlement

This topic describes the systematic instruction to initiate finance settlement to settle the outstanding finances/loans for corporate customers.

A settlement transaction is initiated automatically based on finance-payment reconciliation, in which case a settlement task record is created in the Free Tasks.

The user can manually initiate a settlement transaction in the Finance Settlement screen. You can search and select the finances to settle, and initiate the settlement process. Multiple finances can be selected for settlement. For each finance reference number you select, a settlement transaction is created under Free Tasks.

Specify User ID and Password, and login to Home screen.

1. On Home screen, click Supply Chain Finance. Under Supply Chain Finance, click Finance Settlement.
   The Finance Settlement screen displays.

   Figure 4-1 Finance Settlement - Settlement Details

   
   

   
   Description of "Figure 4-1 Finance Settlement - Settlement Details"

   
   
2. Specify the fields on Settlement Details section to search for the finances against which settlement needs to be initiated.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 4-1 Settlement Details - Field Description

   Field Name	Description
   Settlement Ref No	Specify the reference number for the settlement to be initiated.
   Payment Ref No	Click the search icon to select the payment against which settlement needs to be initiated. For more information to select the payments, refer to List of Payments.
   Payment Party Role	Select the role of the party that is making the payment.
   Payment Party	Click the search icon to select the name of the party that is making the payment.
   Loan Account Credited	Switch the toggle ON, if the loan account is credited with the settlement amount.
   Payment Mode	Select the mode of payment for the settlement. This field is disabled if Loan Account Credited toggle is enabled.
   Debit Account	Click the search icon to select the account to be debited for the settlement. This field is displayed only if Loan Account Credited toggle is disabled. This field is mandatory if Payment Mode is selected as Account Transfer.
   Credit Account	Click the search icon to select the loan account that is credited with the settlement amount. This field is displayed only if Loan Account Credited toggle is enabled.
   Currency	Select the currency for the settlement amount.
   Settlement Amount	Specify the amount being paid by the payment party to settle the finances.
   Settlement Date	Click the calendar to select the date of settlement. By default, the current date is displayed.
   Manual Allocation	Switch the toggle ON to enable manual allocation of the amount to settle the finances.
   Settlement Amount Allocation	Select how the settlement amount must be allocated amongst the selected finances. The available options are: By Highest Outstanding By Lowest Outstanding By Latest Due date

3. Perform the below steps to select the payment against which settlement needs to be initiated.
   1. Click the search icon in the Payment Ref No field to select the payment.
      The List of Payments pop-up screen displays.

      Figure 4-2 List of Payments

      
      

      
      Description of "Figure 4-2 List of Payments"

      
      

      For more information on fields, refer to the field description table.

      Table 4-2 List of Payments - Field Description

      Field Name	Description
      Payment Number	Specify the reference number of the payment to search for.
      Date Reference Basis	Select the value to specify the reference for date criteria.
      From Date	Click the Calendar icon and specify the start range for the selected data reference basis.
      To Date	Click the Calendar icon and specify the end date of range for the selected data reference basis.
      Payment Party	Click the search icon to select the payment party to search for.
      Counter Party	Click the search icon to select the counter-party of the payment to search for.
      Beneficiary Id	Click the search icon to select the beneficiary of the payment to search for.
      Payment Mode	Select the mode of payment.
      Credit Account Number	Click the search icon to select the account of the beneficiary.
      Payment Currency	Select the currency of the payment.
      Amount From	Specify the start of the amount-range within which the payment needs to be searched.
      Amount To	Specify the end of the amount-range within which the payment needs to be searched.

   2. On the List of Payments screen, specify the required search criteria and click Fetch.
      The relevant payment records are displayed.
   3. Select the records and click OK to select the payments to initiate the settlement.
4. Click Proceed after you specify the required details in the Settlement Details section.
   The Filter Parameters section displays, if there are any relevant outstanding finances for the details specified.

   Figure 4-3 Filter Parameter

   
   

   
   Description of "Figure 4-3 Filter Parameter"

   
   

   For more information on fields, refer to the field description table.

   Table 4-3 Filter Parameter - Field Description

   Field Name	Description
   Finance Reference No	Click the search icon to select the outstanding finances using the finance reference number.
   Program	Click the search icon to select the outstanding finances based on the associated program.
   Buyer / Supplier	Click the search icon to select the outstanding finances based on the supplier/buyer. This field displays the role based on the Payment Party Role selected in the Settlement Details section.
   Borrower	Click the search icon to select the outstanding finances based on the borrower.

5. Click Search to search for the outstanding finances.
   The list the finance records displays in the grid.
   

   
   Description of the illustration finance-settlement-registration_filter-parameter-search-results.png

   
   
6. Select the checkbox of the required finances against which the settlement needs to be initiated.
   • Review the details of the selected finances in the following fields.
     • Total Settlement Amount
     • Settlement Amount Allocated
     • Balance To Be Allocated
7. Perform any of the following action in the Filter Parameter section.
   • Click Reset to reset the details.
   • Click the hyperlink in the Finance Reference Number column to view more details on the finance. The Finance Details pop-up screen displays.

     Figure 4-4 Finance Details

     
     

     
     Description of "Figure 4-4 Finance Details"

     
     
8. Click Initiate Settlement to initiate settlement against the selected finances.
   A settlement task is created in the system based on the associated program/product parameters.