ap ar netting

OracleApps Epicenter R12 : Setting up for AP/AR Netting Print

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R12 : Setting up for AP/AR NettingPosted By Sanjit Anand On January 21, 2008 @ 12:00 pm In Oracle Payable,Oracle Receivable,R12,Release12 | 10 Comments

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 Netting After 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AP/AR Netting process and cannot be updated by the user from the Receipts Workbench As we have seen Contra charging has been replaced by AP/AR Netting, [1] lets take a setup walk though to use this functionality. 1.Define netting control account Setup>Financials>Flex field>key>values 2.Create bank Setup>payment>Bank and Bank Branches 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.

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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

6. Create netting agreement

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Receipts>Netting>Netting Agreement

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

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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

10 Comments To "R12 : Setting up for AP/AR Netting"#1 Pingback By Military Blog Updates R12 : Setting up for AP/AR Netting On January 22, 2008 @ 3:10 am [...] Read the rest of this great post here [...] #2 Comment By Shanmuga On March 7, 2008 @ 11:07 am Thanks a lot for this wonderful document!! Small suggestion.. step 5 in this processes is not valid. Please do check. #3 Comment By Navneeth On March 26, 2008 @ 3:08 am Hi I tried to setup and erred at the first step. In the Receipt classes, I tried to enter the Bank Accounts and found none of my Bank accounts appearing in the LOV. Is it due to any missing setup or bug. Pls advise. #4 Comment By sanjitanand On March 26, 2008 @ 3:49 am

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have you done the setup for Bank master and house bank account. Your bank setup with accounts is missing for the LE , under which you are dealing with. #5 Comment By Ravi On May 27, 2008 @ 3:09 am Hi can somebody thro some light on intercompany netting? #6 Comment By Bobby On July 4, 2008 @ 1:50 am Hi, I have a situation where I want to create a single payment to multiple sites of a supplier. Also the same time the supplier sites acts as customer. In the end of the day, I will have to both pay and collect money from the sites Can I utilize the AP/AR netting for this scenario? Also the preference of netting is payments. (90% of the time I need to pay the sites after netting) Please throw some light on this scenario. #7 Comment By Sanjit Anand On July 4, 2008 @ 2:08 am Dear Bobby, Not sure, what version you are using if you are in 11i, there is something called Contra Charging, where supplier and customer as treated as customer and supplier to each other and at the end of month, you need to net off the amount and then raise credit memo or debit memo depends what is total net off amount. In R12, The same functionality have been enhanced by Ap-AR netting. If you need any further information , do let me know, i will help you. there is seperate Post in some time, just check the details Sanjit #8 Comment By Kumar On July 19, 2008 @ 6:54 am Hi can any one help me how to apply Inter company Receipts (I hav a common customer in 2 companies, now he send one receipt for both companies outstanding). how can i apply this receipt??? R12 environment. pls help me in this context. cheers Kumar. #9 Comment By sachin On April 7, 2009 @ 6:47 am In netting receipt accounting, the netting control account is not coming. It is showing cash account..What could be missing? #10 Comment By Dilip On October 14, 2010 @ 7:39 pm While i create the netting agreement, i am not able to see the Bank Account in the LOV. I have done the foll.

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1) Created a Dummy bank, branch and acocunt and marked it as a netting account. 2) Created a doc seq. 3) Enabled the flag in system option. could you let me know what am i missing. thanks, Dilip

Article printed from OracleApps Epicenter: http://www.oracleappshub.com URL to article: http://www.oracleappshub.com/account-payable/r12-setting-up-for-apar-netting/ URLs in this post: [1] AP/AR Netting,: http://www.oracleappshub.com/release12/contra-charging-to-r12-apar-netting/ Disclaimer The opinions expressed here represent solely my own represent personal conjecture based upon experience, practice and observation and does not represent the thoughts, intentions, plans or strategies of my current & previous employers and their clients. Copyright 2007-2010 OracleApps Epicenter. All rights reserved.

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