Manage Offset Bank Settlements

If you match a bank settlement that contains very incorrect information, you may later receive an offset bank settlement along with a new corrected bank settlement. The offset bank settlement represents a cancellation from the bank, custodian, or third party, by using an opposing cash flow. When you manually match the corrected bank settlement with an open receivable/payable, you can identify incorrect bank settlements that offset one another. Marking the bank settlements as offsetting entries indicates that those bank settlements are no longer eligible for automated or manual cash matching. Bank settlements marked as offsets have no impact upon STAR accounting.

For example, you match the original bank settlement of $100 with a Receipt cash flow to an open receivable/payable that is incorrect. Later you receive an offset bank settlement of $100 with a Disbursement cash flow and a corrected bank settlement of $150 with a Receipt cash flow. In this scenario, after you match the original bank settlement, you then unmatched the original bank settlement thereby returning the open receivable/payable to an open status.

You can then mark the original bank settlement and the offset bank settlement for $100 as offsetting entries at the same time you match the corrected bank settlement for $150 with the open receivable/payable.

To manage offset bank settlements:

In Accounting Center, in the left navigation pane, click Transactions > Cash > Cash Matching.
You see the Cash Matching workspace. The Manual Matching tab is active by default.
Click the Matched & Suspended tab.
Search for the matched bank settlement related to the offset bank settlement.
If you previously matched the original incorrect bank settlement, unmatch the original incorrect matched bank settlement. Otherwise, continue to the next step.
The incorrect matched bank settlement returns to an unmatched status, the settled receivables/payables return to an open status, the settled transactions created as a result of the match are cancelled in STAR accounting, and the ledger entries for the settlement are reversed in the non custody basis.
In Cash Matching workspace, click the Manual Matching tab.
You see open receivables/payables in the upper pane and bank settlements in the center pane.
Search for the open receivables/payables and bank settlements that you want to match, along with the offset bank settlements.
Select the check box for each open receivable/payable you want to match.
Select the check boxes for the corrected bank settlement you want to match, for the incorrect bank settlement, and for the offsetting incorrect bank settlement.
On the Cash Matching tab, in the Actions group, click Match.
You see the Match Records dialog box. In the upper pane, you see the selected open receivables/payables along with the Remaining Receivable/Payable amount. In the lower pane, you see the selected bank settlements along with the Balance amount.
Select the Offsetting Entry check box for the incorrect bank settlement and for the reversing incorrect bank settlement that offsets it.
Do not identify the corrected bank settlement that you plan to match as an offset entry. When you identify the offsetting entries, the total and Balance amount changes.
If you want to write off the difference to cash breakage, select the Write to Breakage check box.
If the balance is not zero but you want to fully settle the bank settlement, you can write off the remaining unsettled amount to the account determined by the entity's cash breakage election. Otherwise, if the balance is not zero and you want to partially settle the bank settlement, do not select the Write to Breakage option.
Click the Match button.
The system submits the settlements associated with the corrected bank settlement to the accounting engine for processing. You no longer see the bank settlements and open receivable/payables that you fully matched in the workspace. You no longer see the bank settlements you marked as offsetting entries in the Manual Matching tab, as they are ineligible for matching.