Understanding settlements¶
Settlements in nGenue refer to the financial process that finalizes and records the outcomes of wholesale gas transactions between counterparties. Each settlement ensures that what was physically delivered and commercially agreed upon such as gas volume, price, and delivery period is correctly translated into a financial transaction. The process confirms the payable or receivable amounts for each party, prepares the data for invoicing, and posts the information to the General Ledger (GL) for accurate financial accounting.
In simple terms, settlements form the link between gas operations and finance. They validate that every deal has been completed as per contract terms and that all related payments are properly tracked. Accurate settlements are essential for maintaining billing integrity, ensuring transparency in financial reporting, and meeting internal and external audit requirements.
By understanding how settlements work, helps to ensure that gas transactions are processed consistently, financial data remains accurate, and all activities are traceable for compliance and reporting purposes.
The following screens are utilized in the settlement process within the nGenue application:
Wholesale settlements: Provides access to manage deals and settlement activities, including initializing settlements, reviewing records, and generating invoices for finalized transactions.
Settlement item type: Used to configure and categorize various settlement types, such as standard settlements, adjustments, or charges, ensuring each transaction component is processed correctly.
Settlement status definition: Allows configuration and maintenance of settlement statuses (for example, In progress, Pending approval, Approved), helping track and control the progress of each settlement through its lifecycle.
Settlement review: Offers a detailed view for validating settlement information, verifying quantities, prices, and payment details before final approval and invoice generation.
Wholesale settlement workflow¶
The wholesale settlement and invoicing process follows a structured flow that ensures each gas transaction is accurately processed, approved, and reflected in financial systems.
1. Pre-Configuration setup¶
Begin by establishing the foundation for settlement processing. Define settlement terms that outline payment timelines, calculation methods, and currencies, and configure counterparty profiles with their contractual and financial details. Create invoice templates that include company formatting, required legal text, and mapped data fields to ensure invoices are generated consistently and in compliance with business standards.
2. Deal setup and execution¶
Record gas purchase and sale transactions in the system through the Deal management screen. Each deal is automatically linked to the appropriate settlement terms and invoice setup based on the counterparty agreement, ensuring that all contractual, financial, and operational details are accurately captured for downstream processing.
3. Settlement initialization¶
When deals reach their settlement period, navigate to the Wholesale settlements screen to begin financial closure. Apply filters such as date range or counterparty to locate transactions due for settlement. Select the applicable deals and initiate settlement creation. The system compiles and prepares settlement data for further validation.
4. Settlement record management¶
After initialization, settlement records are created and displayed for review. Each record is automatically assigned a workflow status, such as In review, Pending approval, or Approved. Authorized personnel can validate details including amounts, GL month, and payment due dates and make adjustments if necessary before approval.
5. Invoice processing¶
Once settlement records are approved, proceed to invoice generation. The system uses the configured templates to produce invoices in PDF format, pulling verified settlement details such as transaction amounts, counterparties, and settlement periods. These invoices serve as the official billing documents.
6. Invoice distribution and archiving¶
Completed invoices can be sent electronically or printed for physical distribution. Every invoice, along with its generation date, reference number, and delivery status, is automatically logged in the system for tracking, reporting, and audit purposes.
7. Payment and reconciliation¶
Payments are matched to the corresponding invoices once received. Any discrepancies, such as timing differences, adjustments, or post-settlement changes, can be resolved by regenerating the settlement or performing manual corrections. This ensures complete reconciliation and maintains the accuracy of financial reporting.