Oracle AP/AR Netting

1. Create a customer (Done from AR)                                                                                                        

2. Create a Supplier (Done from AP)                                                                                                           

3. Define a Netting Bank Account                                                                                                               

4. Enter Customer Invoice                

5. Enter Payables Invoice                                                                                                                 

6. Create a Netting Agreement                                                                                                          

7. Create a Netting Batch                                                                                                                

                                                                                                                                                   

1. Create a customer (Done from AR)                                                                                                                                 

 

è Make sure the Payment Terms is set to Immediate                                                                                                     

                                                                                                                                                                                                  

2. Create a Supplier (Done from AP)                                                                                                                                   

à Make sure that the supplier site is flagged as a Pay Site, and the Payment Terms are set to Immediate.              

                                                                                                                                                                                                  

3. Define a Netting Bank Account                                                                                                                           

Create a new bank account for Netting purposes. Use the existing Bank and Branch Bank of America, New York.              

In the Account Controls, set the flag indicating that this account is to be used for Netting:                                                 

Associate your Bank Account to the Receipt Class AP/AR Netting.                                                                                      

                                                                                                                                                                                                  

Query the ‘AP/AR Netting’ receipt class which is a seeded one.                                                                                           

                                                                                                                                                                                                 

4. Enter Customer Invoice                                                                                                                                                    

In Receivables, Vision Operations USA responsibility, enter an invoice for your customer for the amount of USD 750.

The invoice must have the status Complete in order to be available for the netting process.

Check that the terms on the invoice are Immediate, so that the Due Date is today. Do not enter any tax lines.                  

5. Enter Payables Invoice                                                                                                                                                      

In Payables, Vision Operation USA responsibility, enter an invoice for your supplier for the total amount of USD 1000.

Do not enter any tax lines. Check that the terms on the invoice are Immediate, and validate it.                                            

The invoice must have the status validated to be available for Netting.                                                                                 

                                                

6. Create a Netting Agreement                                                                                                                    

Use the responsibility Payables, Vision Operations USA, and define a netting agreement. You do not need to provide the site for your customer and supplier.

                                                                                                                                                                        

Include the following transactions:                                                                                                                

For Payables, add Invoice Type Standard                                                                                                      

For Receivables, add Transaction Type Invoice                                                                                             

Note the profile options                                                                                                                                  

          

7. Create a Netting Batch                                                                                                                 

Search for your Netting batch, and monitor it’s status. You can also monitor the Concurrent Request using View Requests.

When the Status is Selected, click on the Update icon and then assure that your transactions have been selected under the Payables and Receivables tabs.

Submit the batch                                                                                                                                             

                                                                                                                                                                        

Triggers three concurrent requests                                                                                                                  

 

Go to Receivables and check the receipt created automatically                                                                     

                                                                                                                         

Query the netting receipt                                                                                                                                

                                                                                                                                                                         

Go to payables and check that the payment created automatically