AP/AR Netting R12
- 2. 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.
- 3. 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
- 4. Receivables System Options- Enable check box “Allow Payment of Unrelated Transactions”
- 6. Receipt Class – Creation Method AP/AR Netting
- 7. Attach Bank Account to Receipt Class
- 8. 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.
- 9. Document Sequencing Category Receivables- AP/AR Netting Payables- Netting payments
- 10. Netting Agreement Payables -> Payment -> Netting Receivables -> Receipt -> Netting
- 14. Request Create Netting Batch Settle Netting Batch Netting Data Extract
- 15. Query Receipt
- 16. Query Payments Note- No Payment Document is to be Attached