Add a Settlement to an Employee Custody

This screen allows you to record one or more settlements on an employee custody, reducing the custody balance and registering the associated expenses in the accounting records.

This screen is only accessible to users who have the permission to manage settlements, and only on custodies with an “Open” status.

How to Access

• From the main menu, click Finance.
• Select Employee Custody.
• From the custodies list, click the Actions ⋮ button next to the required custody and select Add Settlement.
• Or from the custody view screen, click the Add Settlement button and select the Add Settlement action.

Steps to Add a Settlement

The following fields are displayed at the top of the form in read-only mode:

• Employee Name: The name of the employee associated with the custody.
• Current Remaining Balance: The custody balance before entering new settlements.
• Balance After Settlement: Automatically calculated by subtracting the total of the entered settlement amounts from the current remaining balance.

The screen allows you to add more than one settlement line in a single operation before saving. For each settlement line, fill in the following fields:

• Number: Auto-generated and increments with each new line. (Required)
• Date: Select the settlement date. (Required)
• Type: Select the settlement type from the dropdown. (Required)
• Account: Select the debit account from the chart of accounts. (Required)
• Description: Enter a description or additional notes for the settlement. (Optional)
• Attachments: Attach any supporting documents. (Optional)
• Amount: Enter the settlement amount — must be greater than zero. (Required)

Managing Lines:

• Click Add Line to add a new settlement line.
• Click the delete icon next to any line to remove it before saving.
• Multiple lines can be selected and deleted at once using bulk delete.

Click Save to complete adding the settlements, or click Cancel to go back without saving.

How the System Behaves Upon Saving

Upon successful save:

• All entered settlement lines are saved.
• The system creates an independent journal entry for each settlement line:
  • Debit: the expense account specified in the settlement line.
  • Credit: the employee custody account.
• All journal entries appear in the Transactions tab on the custody view screen.
• The remaining balance of the custody is automatically recalculated.
• If the remaining balance becomes zero, the custody status is automatically updated to “Settled.”

Validation Rules

• Settlements can only be added to custodies with an “Open” status.
• All required fields must be completed before saving.
• Each settlement amount must be greater than zero.
• The total of all entered settlement amounts cannot exceed the remaining balance of the custody.

Activity Log

All settlement addition actions are automatically recorded in the Activity Log tab. The settlement code is auto-generated by the system and is not displayed to the user during the addition process.