AP/AR Netting R12

By Jag - August 15, 2012

AP/AR Netting R12 

  • 1. AP/AR Netting
  • 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”
  • 5. Netting Bank Account
  • 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
  • 11. Entering Netting Batch
  • 12. Request Create Netting Batch Settle Netting Batch Netting Data Extract
  • 13. Query Receipt
  • 14. Query Payments Note- No Payment Document is to be Attached

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