Definition of Account settlement:
An account settlement generally refers to the payment of an outstanding balance that brings the account balance to zero. It can also refer to the completion of an offset process between two or more parties in an agreement, whether a positive balance remains in any of the accounts. In a legal agreement, an account settlement results in the conclusion of a business dispute over money.
The summary of a firms financial operations over a fiscal period that includes key figures and metrics which provide investors a clearer picture of its financial health.
The accounts receivable department of a company is charged with the account settlement process of collecting money owed to the firm for providing goods or services. The ages of the receivables are broken down into intervals such as 1–30 days, 31–60 days, etc. Individual accounts will have amounts and days outstanding on record, and when the invoices are paid, the accounts are settled in the company's books.
How to use Account settlement in a sentence?
- These settlements might also arise when two parties complete offsets, which can leave a positive balance for one party. .
- Account settlement in legal agreements means ending a dispute over money. .
- Account settlements can bring account balances to zero. .
Meaning of Account settlement & Account settlement Definition