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Settling a Bill (Manual Settlement)

A Settle Bill action marks a specific invoice as fully settled in the system. It is an administrative update used when you want a bill to show zero outstanding balance without recording a new payment transaction. Unlike applying a payment, manual settlement does not create a payment record and does not move cash. It only updates the bill’s settlement status in the database.

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Settle Bill vs. Payment

  • Payment: Records actual money received from the customer. It creates a Payment record and is allocated to bills through FIFO settlement.
  • Settle Bill: A settlement mark only. It updates the bill’s settlement amount so the invoice appears fully settled in AR aging. No payment is created and no ledger/cash transaction is posted.

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Settle Bill vs. FIFO Settlement

  • FIFO Settlement: Automatic. When payments (or credit notes) are posted, the system allocates them to unpaid bills in date order and updates Bill.settlement and Payment.settlement.
  • Manual Settle Bill: User-driven. You choose a specific Bill, and the system fully settles only that bill, regardless of payment allocation order.

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How the Settled Amount Is Calculated

The system does not accept an amount from the user. It calculates the bill’s current obligation using the same formula used for AR aging After this, outstanding balance becomes:

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Common Use Cases

  • Offline settlement already handled elsewhere: Payment was collected or adjusted outside the system, but the bill should show as settled in Billspree.
  • Targeted bill closure: You need to settle one specific invoice without changing payment allocation across other bills.
  • Corrections after review: A bill should be marked settled for reporting, even when no new payment will be posted in the system.
  • Previous subscription closure: A customer has been shifted to a new subscription while outstanding bills remain on the old subscription. You can manually settle invoices from the previous subscription so those legacy bills no longer appear as due, without affecting the new subscription’s billing cycle.

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System Impact

  • No payment impact: Does not create or update Payment records.
  • No ledger impact: Does not post accounting/ledger entries.
  • AR aging: The bill’s outstanding amount becomes zero in aging reports.
  • Audit flag: Keep record of manual bill settled to identifies bills settled through this action (not via FIFO payment allocation).

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API Usage

Endpoint: POST /manual-settle-bill Required payload: 
{
  "billID": 12345,
  "workspace": "your_workspace",
  "appCode": 200,
  "email": "user@example.com"
}