Oracle AP/AR Netting Setups and Process Manual

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

Complete screen shots are given below right from creation of customer / supplier to Netting the invoices.

Note:-  All simulations are done on a Vision Demo Instance

1. Create a customer (Done from AR)

 

      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

Nav : Payables -->Payments -->Entry -->Netting -->Netting Agreement

                                                                                

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