Edit a Settlement

This screen allows you to edit an existing settlement line on an open employee custody, while ensuring the accuracy of the associated journal entries.

This screen is only accessible to users who have the permission to manage settlement lines.

How to Access

• From the main menu, click Finance.
• Select Employee Custody.
• Open the required custody and navigate to the Settlements tab.
• In the table, click the Actions menu next to the required settlement and select Edit.

Steps to Edit a Settlement

From the edit screen, you can modify the following fields:

• Settlement Code: You can edit the settlement code. (Required)
• Date: Select the correct date for the settlement. (Required)
• Settlement Type: Choose the required type from the dropdown. (Required)
• Expense Account: Select the appropriate account from the chart of accounts. (Required)
• Description: Enter a description or notes related to the settlement. (Optional)
• Attachments: Attachments can be added or removed. (Optional)
• Amount: Enter the amount value — must be greater than zero. (Required)

Click Save to apply the changes, or click Cancel to go back without saving.

How the System Behaves Upon Saving

Scenario 1 — Editing non-accounting fields:

If only the description or settlement type is modified:

• No changes are made to the journal entries.
• The changes are recorded in the activity log.

Scenario 2 — Editing the expense account or amount:

If the expense account or settlement amount is modified, the system displays a confirmation message:

“Editing this settlement will modify its associated journal entries. Do you want to proceed?”

Upon clicking Confirm, the system will:

• Cancel the original journal entry and create an updated one:
  • Debit: the new expense account for the new amount.
  • Credit: the employee custody account for the new amount.
• Automatically recalculate the remaining balance of the custody.
• If the remaining balance becomes zero, the custody status is automatically updated to “Settled.”
• If the remaining balance stays above zero, the custody status remains “Open.”

Validation Rules

A settlement can only be edited if the custody status is “Open.”

A settlement cannot be edited if the custody status is “Settled,” “Closed,” or “Bad Debt.”

The new amount cannot exceed the remaining balance of the custody. The system will display a validation message if it does.

Activity Log