Paying someone back isn't new spending. The money was already counted when the original expense was added.
Example: Alex pays ₱1,000 for groceries split with Sam. Each person's ₱500 share is counted as their spending. When Sam later sends Alex ₱500, that's just Sam paying back, so counting it again would make Sam's spending look like ₱1,000.
So settlements never appear in reports, spending totals or budgets. They only change the Balances card.