--- id: CON-ACC-REC-002 name: Outstanding Settlement Item feature: FEAT-ACC-REC-04 product_area: accounting module: reconciliation revision: 2 status: draft product_intent: confirmed implementation_evidence: observed source_sha: services-accounting: f47cb263875bbc0c5640fba7dae6785ec32695f8 react-console: baf6dae382d6f41dce976c7f848667ccc37e076f definition: >- A settlement item represents one signed financial effect through a merchant account, together with the timing and evidence needed to follow its expected payout. The collection provides the outstanding settlement ledger. owned_by: MOD-ACC-REC synonyms: - outstanding item - money movement - settlement entry not_to_be_confused_with: - a payment or refund document - a ledger entry - a claim facets: - name: Effect kind and direction meaning: The financial kind determines whether money increases or decreases the expected deposit. used_for: Explaining signed deposit totals. - name: Effect origin meaning: >- A causing payment, later processor import or manual reconciliation entry supplies the item and its effect key. used_for: Recognizing repeated observations of the same money. - name: Expected arrival meaning: 'Eligibility, processor cut-off, business-day lead and grace explain when money should settle.' used_for: Separating normal transit from missing money. - name: Current outstanding standing meaning: >- Resolution, holdings and requested-day timing determine the item’s status without storing an aging label. used_for: Inspecting the position on any selected day. - name: Resolution explanation meaning: A recorded resolution explains money no longer expected through a deposit. used_for: 'Following split, withdrawal and write-off decisions.' - name: Partial-settlement parts meaning: A split preserves the original context across parts equaling its signed amount. used_for: Reconciling partial processor settlement. - name: Candidate deposits meaning: Compatible free payouts provide a short list of places to investigate settlement. used_for: Moving from outstanding money to its potential explanation. - name: External evidence references meaning: Processor or bank references preserve supporting observations of the financial effect. used_for: Supporting stronger matching when evidence exists. relationships: - to: CON-ACC-REC-003 statement: Reconciliation allocations associate settlement items with an explanation. provenance: observed source: 'services-accounting:modules/reconciliation/services/persistence/settlement-items.ts' - to: CON-ACC-REC-004 statement: Overdue exceptions organize investigation of expected money that is missing. provenance: observed source: 'services-accounting:modules/reconciliation/services/persistence/settlement-items.ts' - to: CON-ACC-REC-005 statement: Readiness uses settlement items to explain outstanding clearing money. provenance: observed source: 'services-accounting:modules/reconciliation/services/persistence/settlement-items.ts' - to: CON-ACC-REC-001 statement: Payouts describe the net movement explained by the claimed items. provenance: observed source: 'services-accounting:modules/reconciliation/services/persistence/settlement-items.ts' lifecycle: - state: Not yet payable meaning: The item has not reached an eligible settlement day. how_it_changes: The eligibility day arrives or clearing is recorded. - state: In transit meaning: The item is eligible and still within expected arrival. how_it_changes: Arrival timing advances or a draft claims the item. - state: Late meaning: Arrival is delayed but remains within business-day grace. how_it_changes: Grace expires or a reconciliation claims the item. - state: Overdue meaning: Unclaimed money has passed its expected grace. how_it_changes: 'Detection, acceptance, claiming or resolution changes its position.' - state: In an open reconciliation meaning: An open draft holds the settlement explanation. how_it_changes: Finalize the draft or release its holdings. - state: Settled meaning: A finalized reconciliation holds the item. how_it_changes: Reverse the explanation to release it. - state: Resolved meaning: A resolution explains why settlement is no longer expected. how_it_changes: The resolved item remains historical. acted_on_by: - CAP-ACC-REC-005 - CAP-ACC-REC-006 - CAP-ACC-REC-007 - CAP-ACC-REC-008 - CAP-ACC-REC-009 - CAP-ACC-REC-010 - CAP-ACC-REC-017 - CAP-ACC-REC-020 visible_to: - ACT-ACC-017 - ACT-ACC-018 - ACT-ACC-007 - ACT-ACC-019 - ACT-ACC-011 evidence: - >- Inspected concept support: db/settlement-items.table.ts, reconciliation-evidence.table.ts, bank-holidays.table.ts, settlement-lead-times.table.ts; services/rules/item-kinds.ts, business-days.ts, outstanding-state.ts; services/persistence/settlement-items.ts, settlement-item-recordings.ts; docs/reconciliation/architecture.md §5.2, §12. - 'Inspected concept support: components/accounting/reconciliation/outstanding-screen.tsx.' supersedes: [] --- # Outstanding Settlement Item ## What It Is A settlement item is the smallest money effect that finance staff follow from a merchant account toward a processor deposit. It can represent a capture, refund, return, fee or reserve movement. Its signed amount describes the effect on the expected deposit, so the ledger can explain both incoming money and deductions without treating them as different accounting systems. The item carries its merchant context, origin, occurrence and any supporting references. Payment processing records its own effects alongside the causing transaction. Manual reconciliation entries supply effects that staff learn from the processor’s report. The same money remains identifiable when it is observed again, preventing an ordinary retry from inventing another expected payment. Expected arrival matters because a balanced deposit says nothing about money that never reached any deposit. Following every item gives the finance team that second view. Staff can distinguish a pending electronic check, ordinary transit and an overdue collection even when all completed payouts are explained. ## What It Is Not A settlement item describes a financial effect rather than the payment document itself. One payment workflow may produce several effects over time. A payout describes the processor’s net bank movement, and an allocation describes the reconciliation’s claim on the item. Resolving an item under policy also differs from proving that a deposit carried it. ## How It Is Used Preparers inspect outstanding money when a deposit arrives and when something expected does not arrive. They follow suggested deposits or read the item’s dates and source before claiming it in an explanation. Readers can examine the same position for another day without waiting for the daily detector to update an aging field. Approvers deal with partial settlement and money that will not arrive as originally recorded. Splitting separates those cases while retaining the parent’s context; write-off explains the accounting loss. Missing configuration can stop that accounting action, leaving the item outstanding for correction rather than silently removing the expected money. ## Its Facets **Effect kind and direction** explain the sign of the money. **Effect origin** distinguishes payment-generated records from manually entered or later imported observations. **Expected arrival** combines eligibility, cut-off and business-day policy. The calculation uses the workspace time zone and the merchant’s bank calendar. **Current outstanding standing** combines those dates with claims and resolutions for the requested day. **Resolution explanation** retains how staff dispose of an expectation. **Partial-settlement parts** let separate portions follow separate explanations while preserving the original total. **Candidate deposits** help staff investigate compatible payouts without claiming that an amount proves a match. **External evidence references** preserve the observations that can establish stronger processor support. ## How It Relates Transactions supplies payment effects, accounting configuration supplies merchant and timing choices, and reconciliations claim the money they explain. Exceptions organize missing-money investigation. Readiness compares the remaining items with posted clearing money, so accepting a problem does not erase the amount still held in the books. ## What It Could Become The product should make split and write-off work available through a complete staff workflow. Processor evidence could improve matching once import work is delivered. Timing changes also need explicit review expectations because revised policy does not reconstruct historical occurrence or automatically rewrite already assigned arrival dates.