Improve Settlement Reconciliation with Funds on Hold Tracking

Settlement Batch Reconciliation now supports the identification and tracking of funds placed on hold by payment processors, such as reserve holds and risk-related holds. These amounts can now be mapped to designated asset accounts, helping ensure more accurate reconciliation and General Ledger reporting.

What's New

• Added support for a dedicated Funds on Hold settlement type.

• Funds on hold can now be mapped to an Asset GL account instead of being treated as processing fee expenses.

• Release events automatically create reversing journal entries to maintain accurate ledger balances.

• Added a Funds on Hold column to the Settlement Batch list and Deposit Details views.

• Updated navigation and labels:

  • Settlement Fee Setup → Settlement Account Mapping

  • Processing Fees → Settlement Account Setup

  • Fee Type → Settlement Type

Business Value

This enhancement improves reconciliation accuracy by separating temporarily held funds from processing fees, reducing manual investigation and helping ensure held funds are correctly reflected on the General Ledger.

Action Required

To take advantage of this enhancement:

1. Navigate to Settlement Account Mapping > Settlement Account Setup.

2. Select the Funds on Hold settlement type.

3. Map it to the appropriate Asset GL account.

4. Contact Versapay if you need assistance with configuration.