Settlements, bank fees and how they relate to payables

A Payable is a liability that needs to be paid. A Settlement represents the payment of such liability.

When a payable is paid via Spendesk – using a physical or a virtual card or using a wire transfer – a settlement is created and allocated to the payable. At this point the settlement is in created state. Now the corresponding payable can be prepared and exported to accounting software (see Lifecycle of a payable in Spendesk). The settlement can also be exported to accounting (settlements don't need to be "prepared"). If successfully exported, the settlement state becomes exported. If exporting the settlement failed for some reason, its state becomes failedToExport.

Sometimes settlements get reversed. This is the case for card refunds and wire transfer returns (known as cash return or late return). When this happens, a settlement and a corresponding payable are automatically created in Spendesk. The payable can be prepared and exported to accounting, the settlement can also be exported to accounting.

Types of settlements currently supported in Spendesk:

paymentPayment – a card payment or a wire transfer to an employee or supplier
refundRefund – a card refund
advanceCash advance – a wire transfer to an employee
cashReturnCash return – also known as late return, a wire transfer "bouncing back"
chargeBackChargeback – card dispute

Certain settlements incur bank fees collected by Spendesk. Most notably bank fees are collected on foreign currency payments and ATM withdrawals. When this happens a Bank fee is created (state: created) in Spendesk and allocated to the corresponding Settlement. A bank fee can be exported to accounting or become failedToExport.