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AP/AR Netting

Discussion in 'Oracle Financials' started by Bharat, Aug 26, 2012.

  1. Bharat

    Bharat Community Moderator Forum Guru

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    Hi all,

    While are setting Netting account in AP/AR Netting concept we are going to give account number at netting account creation. And we are going to use that account number at receipt class. So it means is it going to do all transactions to that account? Is that affecting any General Ledger? Is accounting changes?
     
  2. yingsras

    yingsras Forum Advisor

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    Hi Bharat,

    If you have the Netting Bank Account, when you do AP/AR Netting transactions.. the accounting on AR (Dr Cash in Netting Bank Account)
    will be offset with the accounting on AP (Cr Cash in Netting Bank Account)

    You cannot use the Netting Bank Account for normal Payment or Receipt.

    Thanks,
    Ying
     
  3. Bharat

    Bharat Community Moderator Forum Guru

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    Hi Ying,

    But here automatically receipts are generating at AR Side and Payments are generating at AP side. This means are they paying that amount or not?
     
  4. yingsras

    yingsras Forum Advisor

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    Hi Bharat,

    Yes, If you have AP invoice amount 1000 and AR Transaction amount 800, after you do netting.
    Payment will be generated 800 and Receipt will be generated 800.
    So you have to do normal payment 200.

    Thanks,
    Ying
     
  5. Bharat

    Bharat Community Moderator Forum Guru

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    Hi Ying,

    Yeah I came to know the process now. So here its going to generate payments and receipts for balanced amounts in AP/AR Netting account and letting us know remaining amount to do receipt/payments right?
     
  6. yingsras

    yingsras Forum Advisor

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    Hi Bharat,

    There is the report after running Netting Batch called Final Netting Report)
    You will see the Net Amount and the information of AP invoice and AR invoice that are generated.
    You can query both invoices and check the remaining amount in AP invoice or AR invoice.

    Thanks,
    Ying
     
  7. Bharat

    Bharat Community Moderator Forum Guru

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    Yeah, do we need to do create payment or receipt for remaining amount or what is the process we need to do later finishing with that report.
     
  8. yingsras

    yingsras Forum Advisor

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    You have to create payment/receipt for the remaining amount :)
     
  9. Bharat

    Bharat Community Moderator Forum Guru

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    Got it Ying. Thanks for your valuable replies.