Post on 25-Jun-2015
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AP/AR NettingAP/AR Netting
NettingNetting
When a trading partner is both a customer and a When a trading partner is both a customer and a supplier, you may choose to offset open receivables’ supplier, you may choose to offset open receivables’ against open payables’ items.against open payables’ items.
Netting Agreements add trading partner terms as well as Netting Agreements add trading partner terms as well as deploying company controls. deploying company controls.
A selection program automatically pulls information from A selection program automatically pulls information from Oracle Receivables and Oracle Payables taking into Oracle Receivables and Oracle Payables taking into consideration discounts, late fees, and withholding taxes consideration discounts, late fees, and withholding taxes prior to determining the final netting amount.prior to determining the final netting amount.
A review process and trading partner approval afford A review process and trading partner approval afford further verification to support the netting event. further verification to support the netting event.
Per-Requisites Per-Requisites
Setups Required for AP/AR NettingSetups Required for AP/AR Netting - -Define netting control account Define netting control account
Receivables System Options Receivables System Options
Create bank- “Netting Account” flag to YesCreate bank- “Netting Account” flag to Yes
Receipt class -‘AP/AR Netting’ Receipt class -‘AP/AR Netting’
Attach your bank account in this receipt classAttach your bank account in this receipt class
Netting Batch Approver Netting Batch Approver
Profile: Chargeable Subcontracting Enabled Profile: Chargeable Subcontracting Enabled
Document sequencing for AP & AR Document sequencing for AP & AR
Netting Agreement Netting Agreement
Receivables System Options-Receivables System Options-Enable check box “Allow Payment of Unrelated Enable check box “Allow Payment of Unrelated
Transactions” Transactions”
Netting Bank AccountNetting Bank Account
Receipt Class –Receipt Class –Creation Method AP/AR NettingCreation Method AP/AR Netting
Attach Bank Account to Receipt ClassAttach Bank Account to Receipt Class
Profile Option: Chargeable Subcontracting Enabled Profile Option: Chargeable Subcontracting Enabled
““Yes”- Only invoices that were matched to purchase Yes”- Only invoices that were matched to purchase orders orders withwith outsourced assemblies would be selected by outsourced assemblies would be selected by the netting process. the netting process.
““No”- Only invoices that were matched to purchase No”- Only invoices that were matched to purchase orders orders withoutwithout outsourced assemblies would be outsourced assemblies would be selected by the netting process. selected by the netting process.
““D”- All eligible invoices will be selected for netting D”- All eligible invoices will be selected for netting irrespective of whether or not they are matched to irrespective of whether or not they are matched to purchase orders. purchase orders.
Document SequencingDocument SequencingCategoryCategoryReceivables- AP/AR NettingReceivables- AP/AR NettingPayables- Netting paymentsPayables- Netting payments
Netting AgreementNetting AgreementPayables -> Payment -> NettingPayables -> Payment -> Netting
Receivables -> Receipt -> NettingReceivables -> Receipt -> Netting
Entering Netting BatchEntering Netting Batch
RequestRequest
Create Netting BatchCreate Netting Batch
Settle Netting BatchSettle Netting Batch
Netting Data ExtractNetting Data Extract
Query ReceiptQuery Receipt
Query PaymentsQuery Payments
Note- No Payment Document is to be Attached Note- No Payment Document is to be Attached