A Technical Insight into Oracle AP/AR Netting

AP/AR Netting – A Technical Insight

ORACLE APPLICATIONS
WHITE PAPER
AP/AR NETTING –
A TECHNICAL INSIGHT
AUGUST 2008
Contributor: Shanmuga Senapathy, AP Support

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AP/AR Netting – A Technical Insight

Contents

Introduction
Objective
Scope
Background
What is AP/AR Netting?
How it worked before R12?
How does it work in R12?
What are the Setup Steps involved?
How Netting batches are created?
What happens when we submit a Netting Batch?
How Netting Batches are settled?
What are various Netting Batch Statuses?
What are the tables involved?
How these tables are linked?
Summary
Information Source

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AP/AR Netting – A Technical Insight

Introduction

Objective
To provide a technical insight into Oracle AP/AR Netting with hopes of giving the reader a good understanding of the different setups involved.
Scope
Even though this paper is written to cover the technical aspects of Netting, it will also provide a functional insight of this functionality. This paper is written with the intention of helping implementers and those supporting the application to under how Netting works.
Background
The Oracle AP/AR Netting is a feature that provides a foundation to create netting agreements with flexible definition of business rules and association of trading partners. It executes an automated netting process so that customers can reduce their debt obligations without incurring bank charges by creating unnecessary payments and receipts.

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AP/AR Netting – A Technical Insight

What is AP/AR Netting?

Oracle AP/AR Netting allows you to net your Payables invoice balances against your Receivables invoice balances for those Customers who are also your Suppliers. For example, If you have a customer who is also your supplier, then rather than him paying you and then you paying him,
AP/AR netting allows you to pay the net difference between how much you owe the