Settlement
An authorization is a reservation of funds against the customer's open to buy credit line and occurs real time typically. Settlement is the process where funds are actually transferred to the merchant account and are normally a nightly batch job after the Billing run.
The settlement program will be executed for all payment card G/L accounts. The standard SAP settlement process is a send and forget action - there is no immediate acknowledgement that the batch was sent and received as in the authorization process and therefore requires daily validation/reconciliation. The settlement process will normally clear the items in SAP from the Credit Card Clearing Account to the Bank Settlement Clearing Account and then send the data to XiPay On-Demand across the Settlement RFC for processing to the clearing house.
Settlement Workflow
The following diagram illustrates the workflow for settling electronic payments from SAP through PAS to the On-Demand services.
