Professional Documents
Culture Documents
AP AR Netting
AP AR Netting
Netting
When a trading partner is both a customer and a supplier, you may choose to offset open receivables against open payables items. Netting Agreements add trading partner terms as well as deploying company controls. A selection program automatically pulls information from Oracle Receivables and Oracle Payables taking into consideration discounts, late fees, and withholding taxes prior to determining the final netting amount. A review process and trading partner approval afford further verification to support the netting event.
Per-Requisites
Setups Required for AP/AR Netting
Define netting control account Receivables System Options Create bank- Netting Account flag to Yes Receipt class -AP/AR Netting Attach your bank account in this receipt class Netting Batch Approver Profile: Chargeable Subcontracting Enabled Document sequencing for AP & AR Netting Agreement
Document Sequencing
Category Receivables- AP/AR Netting Payables- Netting payments
Netting Agreement
Payables -> Payment -> Netting Receivables -> Receipt -> Netting
Request
Create Netting Batch Settle Netting Batch Netting Data Extract
Query Receipt
Query Payments
Note- No Payment Document is to be Attached