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      Understand the settlement report

      The settlement report contains a lot of information, and this is how you should read and understand the content.

      What is the billing cycle of CURRENT?

      The billing engine of the CURRENT solution performs the following monthly steps:

      • 25th of the month: Users are invoiced for subscriptions, charging and products purchased
      • 1th of the month step 1: Monthly financial numbers calculated and Financial page updated
      • 1th of the month step 2: Settlement on last month payment collected to calculate Company balance
        • Company monthly balance calculation:
          Balance = payments collected this period - operational costs this period
      • 1th of the month step 3: Companies with negative monthly balance receives their invoices
      • 1th of the month step 4: Bank initiation for payout to Companies with positive monthly balance

      What happens during the settlement run (step 2 above)?

      A key task of the settlement process is to register all the invoices that has been paid during the month and do the settlement between all the parties that are to receive the paid money, and then calculate the balance for each Company.

      If the collected payments (actually paid invoices from your Customers) are more than the cost of last months operations, the balance is positive and a payout will be made. If the balance is negative, an invoice will need to be paid.

      1. Register all paid invoices over last month
      2. Distribute the paid money (money collected) between the receiving parties as revenue
      3. Calculate the balance for all companies (balance = payment collected - operational costs)
      4. Create invoices for Companies with negative balance and payout when positive balance

      ! Only payments collected in the period (paid invoices) are part of settlement !

      How to understand the Settlement report?

      • Info on Settlement period
      • Info on Settlement CLAIMER and DEBTORS
      • Info on Settlement balance calculation (Payments collected in period - Cost in the period)
      • Detailed Info on payments collected in the period
      • Detailed Info on cost in the period

      Info on Settlement period

      Statement about what period this is. 

      Info on Settlement CLAIMER and DEBTORS

      Statement about who the CLAIMER is, which is the Company the settlement is calculated on.

      Statement about the DEBTORs which is all companies that have issued invoices to you during the period. This is the list of operational cost for the CLAIMER during this period.

      Info on Settlement balance calculation (Payments collected in period - Cost in the period)

      Statement on the balance  on Collected Payments in the period minus Costs in the period.

      If the collected payments (actually paid invoices from your Customers) are more than the cost of last months operations, the balance is positive and a payout will be made. If the balance is negative, and invoice will need to be paid.

      Detailed Info on payments collected in the period

      Listing of all collected payments in this period. Collected payments are the actual paid invoices from the total amount of invoices that you/Company have issued to your Customers. 

      Example 1:

      You are a Location Owner and one of your tenants  are  on the 25th of January invoiced for his February subscription and his January charging cost. If he has a registered and valid credit card and sufficient funds to pay, the payment will be done in full on the 26th of January.

      Financially this is stated as January revenue.

      For the Settlement this will now be listed as Collected payment for January Period and be part of your January balance settlement.

      Example 2:

      You are a Location Owner and one of your tenants  are  on the 25th of January invoiced for his February subscription and his January charging cost. Now, his registered credit card has expired and the payment bounces. He does not update his credit card details until February 5th, hence payment is made February 5th.

      Financially this is stated as January revenue.

      However (!), for the Settlement this will now be listed as Collected payment for February Period and NOT be part of your January balance calculation. This payment will appear on the February Settlement as collected payment. 

      Detailed Info on cost in the period

      Listing of all Company cost for the period. Example of typical operational costs for a period are

      • Subscriptions cost for next period, as subscriptions are paid in advance
      • Transaction fees on this and previous periods
        • Charging fees from example 1 above will be part of settlement for January period
        • Charging fees from example 2 above, will be part of settlement for February period, but financially belong to January period