AP/AR Netting in Accounts Receivables

AP/AR Netting 

Note: Here XYZ Corporation is acting as both Supplier and Customer

 

Process
1. In AP we have to create invoice against XYZ Corporation with 25,000$
2. In AR we have to create Transaction against XYZ Corporation with 20,000$
3. After creating these transactions we have to create netting agreement
4. Perform Netting Settlement
5. System Creates Netting Payment - 20,000$
6. System Creates Netting Receipt - 20,000$
Setup1: Create Customer XYZ Corporation
Path: Receivables >> Billing >> Taskpane >> Create Customer
Task: Manage Customers

 

Setup2: Create the same organisation as Supplier: Celine
Path: Procurement >> Suppliers >> Taskpane >> Create Suppliers

 

*Supplier Profile has been created

 

*Create Supplier Address

 

*Search the privilage and add it to the role

 

*Add this privilage to the job role

*We can see the added privilege to the job role

*Add Role "Customer and Supplier Balance Netting" and the role code is "ORA_JE_CUSTOMER_AND_SUPPLIER_BALANCE_NETTING_DUTY"

 

 

Setup4: Run LDAP for Syncronisation
Path: Navigator >> Tools >> Scheduled Processes >> Run LDAP

 

Setup6: Create Document Sequence Category
Task: Manage Document Sequence Categories
*Make sure that the table name here is "AP_CHECKS_ALL"

 

Setup7: Create Document Sequence
Task: Manage Document Sequences
*Here in this task we have to assign our "Document Sequence Category".

Setup8: Create Netting Bank Account (Dummy Bank)

Step1: Create Bank

Task: Manage Banks

Step2: Create a Branch against that Bank Account
Task: Manage Bank Branches Step3: Create Bank Account Task: Manage Bank Accounts *Here check the checkbox called "Netting Account"

 

*Create the Payment Document Numbering *Assign this Bank Account to our Business Unit (BU) *Here we have to assign the payment method and payment document  category to our Business Unit (BU)

 *Here Assign the Business unit and netting bank account to this receipt classes and methods.

 

Process
1. In AP we have to create invoice against XYZ Corporation with 25,000$
2. In AR we have to create Transaction against XYZ Corporation with 20,000$
3. After creating these transactions we have to create netting agreement
4. Perform Netting Settlement
5. System Creates Netting Payment - 20,000$
6. System Creates Netting Receipt - 20,000$
1. In AP we have to create invoice against XYZ Corporation with 25,000$
Path: Payables >> Invoices >> Taskpane >> Create Invoice

2. In AR we have to create Transaction against XYZ Corporation with 20,000$

Path: Receivables >> Billing >> Taskpane >> Create Transaction

 

 

3. After creating these transactions we have to create netting agreement

Path: Receivables >> Accounts Receivable >> Taskpane >> Manage   Netting Agreements

 

*The same functionality can be seen in payables also

Path: Payables >> Payments >> Taskpane >> Manage Netting Agreements

 

*From any navigation we can create the Netting Agreements

 *In trading partners tab we have to specify between which supplier and which customer the Netting has to be done

 

 

*In Letters Tab populate the address

*Netting Agreements has been created

 

 

4. Perform Netting Settlement

Path: Receivables >> Billing >> Taskpane >> Manage Netting Settlements

*If the netting agreeement is available in the system then only system will show  the Legal Entity in LOV.

 

*Login into the instance

 

*System is fetching the invoice from payables

 

*System is fetching the invoice from receivables

 

*Select the transaction, clickon actions and clickon submit settlement

Path: Receivables >> Account Receivables >>Taskpane >> Manage Netting  Settlements

 *Now the status is Settled

 

*Here we can see the Netting Attachment

 

*now goto payables >> Invoices >> Taskpane >> Manage Invoices
Here we can see the status as paid 20,000$

 

*Goto payment workbench you can find the same

Path: Payables >> Payments >> Taskpane >> Manage Payments

*Here we can see the payment status this was created by system automatically

 

*Goto Receivables >> Billing >> Taskpane >> Manage Transactions >> Actions >>  View Balance Details

*Here system created the receipt automatically as part of settlement *Goto Receipt Workbench to find out the receipt what has created by the system during the settlement process Path: Receivables >> Accounts Receivable >> Taskpane >> Manage Receipts *Here this is the receipt which is created by the system and the receipt method here is AP/AR Netting

 *This is the receipt which was created by the system