Netting Solutions by Reach Netting solutions Pvt Ltd New Delhi
APAR Netting
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Transcript of APAR Netting
AP/AR Netting
AP/AR Netting automatically compares Payables to Receivables and creates the appropriate transaction in each system to net supplier invoices and customer invoices. With this functionality, A receivables user can
View netted receipt details directly from the receipt Create Netting Agreements and Netting Batches
With this functionality, there is significant increase in user productivity and effectiveness because of tight integration and automation.
You can access the process via:
Navigation: Receipts > Netting > Netting Batch Navigation: Receipts > Netting > Netting Agreement
Receipts > Receipts > Action Menu: AP/AR NettingAfter Querying a netted receipt, the user can see more details about the batch by selecting AP/AR Netting from the Action menu. This launches the AP/AR Netting batch window. Netted Receipts are created automatically by the AP/AR Netting process and cannot be updated by the user from the Receipts Workbench
As we have seen Contra charging has been replaced by AP/AR Netting, lets take a setup walk though to use this functionality.
1.Define netting control account
Setup>Financials>Flex field>key>values
The account should be Asset account
2.Create bank
Setup>payment>Bank and Bank Branches
Set the Netting account to Yes
You should note, Payment document is not required for netting bank account.
3.Go to receivables responsibility, receipt class definition form
Setup>Receipts>Receipt class
Query the 'AP/AR Netting' receipt class, which is a seeded one.
4. Attach your bank account in this receipt class.
5.Go to system options, transaction and customer tabbed region, there enable 'Allow payment of Unrelated Transactions'check box
Set the Profile Option 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
Then Create the Document Sequence
SysadminApplicationDocument—Sequence Numbering
Create netting agreement
Receipts>Netting>Netting Agreement
Entering the Net Batch
7. Enter an Invoice in Payables, validate and run create accounting.
8. Enter a transaction in receivables.
9. Create Netting Batch
Receipts >Netting >Netting Batch
10. Query your netting batch and see the status as Complete. also click on view report icon on right side.click on run push button, you can see the final netting report.
11.Go to view>request>find
You can see 3 concurrent request programs
Create Netting batch Settle netting batch
Netting Data Extract
12.Now go to receipts and query the AP/AR netting receipt.
13.Now Go to Tools >view Accounting, you can see Netting control account (defined in first step a) debited and receivable account credited.
14. Now go to payables and query your invoice number and click the tab view payments. You can see the payment details and copy the document number.
15.Query your copied payment document number.What you can see the payment type as Netting .
16.Click actions button and enable the check box create accounting.
17.Go to tools>view accounting .You can see the accounting entry
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
Oracle Financials Common Country Features user guide