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AP AR Netting

The document outlines the prerequisites and setup required for accounts payable and accounts receivable netting in Oracle. A netting program automatically offsets open receivables and payables, considering discounts, fees, and taxes to determine the final amount. A review process and partner approval verifies the netting event before settlement through a designated netting bank account and document sequencing.

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Surya Maddiboina
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276 views16 pages

AP AR Netting

The document outlines the prerequisites and setup required for accounts payable and accounts receivable netting in Oracle. A netting program automatically offsets open receivables and payables, considering discounts, fees, and taxes to determine the final amount. A review process and partner approval verifies the netting event before settlement through a designated netting bank account and document sequencing.

Uploaded by

Surya Maddiboina
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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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

Receivables System OptionsEnable check box Allow Payment of Unrelated Transactions

Netting Bank Account

Receipt Class Creation Method AP/AR Netting

Attach Bank Account to Receipt Class

Profile Option: Chargeable Subcontracting Enabled


Yes- Only invoices that were matched to purchase orders with outsourced assemblies would be selected by the netting process. No- Only invoices that were matched to purchase orders without outsourced assemblies would be selected by the netting process. D- All eligible invoices will be selected for netting irrespective of whether or not they are matched to purchase orders.

Document Sequencing
Category Receivables- AP/AR Netting Payables- Netting payments

Netting Agreement
Payables -> Payment -> Netting Receivables -> Receipt -> Netting

Entering Netting Batch

Request
Create Netting Batch Settle Netting Batch Netting Data Extract

Query Receipt

Query Payments
Note- No Payment Document is to be Attached

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