Let us now go thru the setup steps for netting process.The steps involved in setup are
• Netting Bank Account
• Receivables System Options
• Netting batch approver
• Chargeable Subcontracting
• Netting Agreement
The first step in setting up a netting agreement is to create a bank account using cash management responsibility.Since the netting process works similar to the application of receipts and payments, the companies will have to setup a cash account specifically for netting, to be used as a clearing account. Note that the balance with in the cash account will always be zero.Also this account has to be associated with AP/AR netting receipt class using the Receivables responsibility.
In Receivables System Options we have to check the “Allow payment of unrelated transactions” check box to create netting agreements across multiple
unrelated customers.
Next step in the setup process is to select the trading partners. Users can select one or multiple supplier and customers to net.You can also select the site or leave the site blank, if you leave it blank all sites for selected trading partner will be included in the netting process.If netting process requires approval then the approver must be set up as a contact for the trading partner(Customer / Supplier). The contact must be setup with an email address. The two options available for approver are APPROVE and REJECT. If APPROVE is selected the administrator can submit the batch for netting process even if the trading partner does not approve the batch by the response date mentioned on the netting agreement page.If selection is REJECT then the administrator can resubmit the batch or cancel the batch and release all the transactions selected for netting.
If the user would like to use OSA(outsourced assembly processing), two profile options must be enabled.One "Chargeable Subcontracting Enabled" and second "JMF:Enable chargeable subcontracting". Both the profile options should be enabled at site level.The first one enables users to include OSA items in netting process.The second one allows items in purchasing to be marked as OSA.
Create a netting agreement in order to setup the rules that will decide which transactions can be selected for netting and how they are ordered and processed once selected
• Netting Bank Account
• Receivables System Options
• Netting batch approver
• Chargeable Subcontracting
• Netting Agreement
The first step in setting up a netting agreement is to create a bank account using cash management responsibility.Since the netting process works similar to the application of receipts and payments, the companies will have to setup a cash account specifically for netting, to be used as a clearing account. Note that the balance with in the cash account will always be zero.Also this account has to be associated with AP/AR netting receipt class using the Receivables responsibility.
In Receivables System Options we have to check the “Allow payment of unrelated transactions” check box to create netting agreements across multiple
unrelated customers.
Next step in the setup process is to select the trading partners. Users can select one or multiple supplier and customers to net.You can also select the site or leave the site blank, if you leave it blank all sites for selected trading partner will be included in the netting process.If netting process requires approval then the approver must be set up as a contact for the trading partner(Customer / Supplier). The contact must be setup with an email address. The two options available for approver are APPROVE and REJECT. If APPROVE is selected the administrator can submit the batch for netting process even if the trading partner does not approve the batch by the response date mentioned on the netting agreement page.If selection is REJECT then the administrator can resubmit the batch or cancel the batch and release all the transactions selected for netting.
If the user would like to use OSA(outsourced assembly processing), two profile options must be enabled.One "Chargeable Subcontracting Enabled" and second "JMF:Enable chargeable subcontracting". Both the profile options should be enabled at site level.The first one enables users to include OSA items in netting process.The second one allows items in purchasing to be marked as OSA.
Create a netting agreement in order to setup the rules that will decide which transactions can be selected for netting and how they are ordered and processed once selected
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