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Auto-Reconciliation of Split Settlements in NetSuite Deposits
Auto-Reconciliation of Split Settlements in NetSuite Deposits

Blue Onion has implemented an automated solution for handling split settlements, like Shop Cash, in NetSuite deposit pushes.

Kathy avatar
Written by Kathy
Updated over 3 months ago

Overview

Blue Onion has implemented an automated solution for handling split settlements, like Shop Cash, in NetSuite deposit pushes. This guide explains how the system manages transactions where a single payment is split across multiple settlement periods, ensuring accurate reconciliation while minimizing manual intervention.

Benefits

  • Eliminates manual reconciliation for split settlements

  • Prevents duplicate transaction posting errors when pushing deposits

  • Maintains accurate audit trail

  • Reduces processing time and errors

  • Automatically balances across multiple settlement periods

Key Concepts

  • Split Settlement: When a single payment transaction settles across multiple payout periods and reconciles to one GL payment record

  • Clearing Account: A temporary account used to balance split settlements until all parts are processed

Setup Requirements

1. Configure Split Settlement Clearing Account

Navigate to: General Ledger > Configuration > Chart of Accounts > System Generated tab. You'll need to map an account for "Split Settlement Payments." This account serves as a clearing account for split settlements that reconcile to a single GL payment transaction.

2. Account Mapping Recommendations

  • Use an "Undeposited Funds" type account

  • Ensure the account is configured for both debits and credits

  • Consider using a dedicated clearing account for better tracking

How It Works

First Payout Processing

When you push the first payout that includes part of a split settlement, the system automatically includes:

  1. The GL transaction that reconciles to the full value of the many payments

  2. A manual adjustment is automatically created to:

    • Reduce the payout value by the amount settling in future payouts

    • Post to the Split Settlement clearing account

    • Include a clear memo referencing the original order

Example:

  • A GL payment of 61.94 is included in the first payout automatically

  • A variance of ($0.64) is shown, along with the amount accounted for by Split Settlement Adjustments

  • An auto-generated manual adjustment of ($0.64) is included and mapped to the account selected for split settlement clearing

Subsequent Payout Processing

For later payouts containing the remaining settlement portions:

  1. The system creates a reversing adjustment that:

    • Adds back the previously reduced amount

    • Posts to the same clearing account

    • References the same order number

Example:

  • No GL payment record will be include, due to it being included in the initial payout

  • A variance of $0.64 is shown, along with the amount accounted for by Split Settlement Adjustments

  • An auto-generated manual adjustment of $0.64 is included and mapped to the account selected for split settlement clearing

  • As shown below, there may often be more than one adjustment included in a payout

Best Practices

  1. Regularly review the Split Settlement clearing account

  2. Use the provided memo fields for transaction tracking

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