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Oracle Public Sector Financials (International) User Guide
Release 12.1
Part Number E13418-03
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Single Third Party Procedures

Definition

Single Third Party is a single entry point for creating, viewing, and deactivating a third party that is both a customer and a supplier. Single Third Party also enables the third party to be tracked as a single legal entity within the application, which enables the calculation of a net balance.

WARNING: Netting is legal only in certain countries.

For information on where netting is allowed, see International Implications.

Overview

Calculating the net balance for a single third party involves the following tasks:

Netting single third party documents also involves the following:

For information on setting up single third parties, see Single Third Party Setup, Oracle Public Sector Financials (International) Implementation Guide.

For information on netting transaction types, see Netting Transaction Types.

For information on netting packages and netting batches, see Netting Packages and Netting Batches.

As part of the single third party posting process, all netting documents for the net outstanding balance are automatically generated by the system.

Netting Process

The diagram below shows an overview of the netting process, as described in the accompanying text.

Netting Process Overview

the picture is described in the document text

Note: Netting transactions can only be performed by the accounts officers.

Netting Transaction Types

The netting transaction type is determined by the net balance for a third party. The netting transaction types available are described in the table below.

Netting Transaction Types
Netting Transaction Type Description
Objections to Payment The netting transaction is a Payables invoice. The purpose of netting is to partially or fully assign this invoice to another third party. The invoice amount is specified on the Create Netting Packages window. The assignee third party needs to be set up as an objecting third party on the Single Third Party - Main window and needs to have an active pay site in the given operating unit. Netting creates a Payables credit memo for the original third party and a Payables invoice for the same amount for the objecting third party. This option can be performed by authorized account officers on receipt of a legal notification. This can be controlled by the value of the Single Third Party: Objecting Third Party Allowed profile option.
Payment Excesses Nets a third party’s Receivables invoices and settlements. The original transaction needs to be a Receivables credit memo. Netting creates a Receivables debit memo and a Payables invoice for the same amount as the original credit memo amount.
Assignments This netting type is identical to the Objection to Payment type except that it is available to all account officers. In addition, the assignee must be set up as a debt beneficiary type third party on the Single Third Party - Main window.
Supplier Reimbursements Nets a third party’s Payables invoices and settlements when a credit memo is received. The original transaction must be a Payables credit memo. Netting creates a Receivables debit memo and a Payables invoice for the same amount as the original credit memo amount.

Netting Packages and Netting Batches

The accounts officer creates netting packages using the Create Netting Packages window. Netting packages are collections of Payables and Receivables transactions for a single third party.

Netting batches are submitted using the Submit Netting Batches window. Submitting netting batches rather than netting packages has the advantage that netting and posting can be performed independently. For example, the information that netting provides can be useful at any time, but submitting can be convenient at the end of each day.

Prerequisites

Creating a Single Third Party Procedure

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To create a new single third party:

  1. Navigate to the Single Third Party - Main window as follows:

    OPSF(I) Single Third Party - Single Third Party Maintenance

  2. In the STP Name field, enter the name of the single third party.

    Note: The Active check box must be selected. This enables the system to calculate single third party balances. The Active check box is selected by default.

  3. In the STP Type field, select a single third party type.

    The single third party type indicates that the third party is an objecting third party if the Objection to Payment netting type is selected, or a debt beneficiary if the Assignments netting type is selected.

  4. If the single third party must be under a threshold control, select the Enforce Threshold check box.

  5. In the Address region, enter address references to distinguish between third party addresses. The address reference is the site name, as defined in Payables.

  6. To define an address reference as a customer location, a supplier site, or both, select the Customer or Supplier check box, or both.

    Note: To perform netting on an address reference, it must be defined as a customer, a supplier, or both and there must be a valid bill-to location For more information, see Customers Overview, Oracle Receivables User Guide.

  7. Define an address for the single third party as follows:

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  8. Close the Single Third Party - Address Details window.

    The Single Third Party - Main window appears.

  9. Click New (B) to create another single third party.

Entering Customer Details

To view customer details and enter additional information, perform the following steps.

  1. In Receivables, navigate to the Customers - Standard window as follows:

    Customers - Standard

  2. Enter search criteria or leave the fields blank to retrieve all records.

  3. Click Find.

  4. Select a customer name from the list.

For information on the Customers - Standard window, seeCustomers Overview, Oracle Receivables User Guide.

Entering Supplier Details

To view supplier details and enter additional information, perform the following steps.

  1. In Payables, navigate to the Suppliers window as follows:

    Suppliers - Inquiry

  2. Enter search criteria or leave the fields blank to retrieve all records.

  3. Click Find.

For information on the Suppliers window, see Suppliers, Oracle Payables User's Guide.

Single Third Party - Address Details Window Description

Single Third Party - Address Details Window Description
Field Name Description
Operating Unit Operating unit of the single third party.
Address Reference Address reference; automatically displayed from Single Third Party - Main window
Country Third party location; identical to Country in Payables or Receivables
EDI Location Electronic Data Interchange location; identical to EDI Location in Receivables
Address Third party address; first line required; identical to Address in Payables or Receivables
Alternate Name Alternate name to identify third party; identical to Alternate Name in Payables or Receivables
City Third party location; identical to City in Payables or Receivables
State Third party location; identical to State in Payables or Receivables
Postal Code Third party postal code; identical to Postal Code in Payables or Receivables
Province Third party location; identical to Province in Payables or Receivables
County Third party location; identical to County in Payables or Receivables
Reference Third party reference; defines combination of third party and address
Language Language used by third party; identical to Language in Payables or Receivables
Category Identical to Address Category in Receivables; used in analysis of customers
Alternate Address Third party alternate address; identical to Alternate Address in Payables

Viewing Single Third Party Details and Outstanding Balance Procedure

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To review details such as the address and the net outstanding balance for an existing single third party:

  1. Navigate to the Single Third Party Netting Balance window as follows:

    OPSF(I) Single Third Party - Netting Balance

  2. Perform one of the following actions:

  3. Click Find.

    the picture is described in the document text

    The Single Third Party Netting Balance window appears. If the Third Party Name field is left blank, all records are retrieved. The up and down arrow keys can be used to scroll through all available single third parties.

  4. To examine an invoice in more depth, select an invoice and click the drill-down button.

    The standard Payables Invoices window or Receivables Transactions window appears.

  5. In the Currencies Code field, select the currency code.

    The functional currency is displayed by default. For example, in France the default currency is FRF for French Francs or EUR for Euros.

  6. Select one or more of the single third party Site check boxes.

    All Site check boxes are selected by default.

  7. Click OK.

    Invoice details that are entered in the given currency and posted to General Ledger as well as the outstanding third party balances are displayed in the Payables Invoices and Receivables Invoices regions.

Single Third Party Netting Balance Window Description

Single Third Party Netting Balance Window Description
Field Name Description
Operating Unit Operating unit of the single third party.
Third Party Name Third party name with associated address references
Currency Code Currency used to calculate netting balance; default is functional currency
<address reference> Single third party address reference automatically displayed from Single Third Party - Main window; by default, all address references selected; address references used to distinguish customer or supplier sites
Clear Erases data from Payables Invoices and Receivables Invoices regions
OK Populates Payables Invoices and Receivables Invoices regions with selected site data
Invoice Number Invoices from selected third party site or sites.

Note: Rules for displaying Payables invoices are as follows: General Ledger date must be before today's date, amount must be greater than zero, invoice must be posted

Amount Outstanding invoice amount minus any amount already netted
Netting in Progress Netting in progress; invoice amount involved in pending netting transaction
AP Balance Balance in Payables for third party; Amount fields sum shown in selected currency
Netting In Progress Netting transactions total still being processed in Payables; sum of Netting in Progress fields
Invoice Number Billed invoices to selected third party sites.

Note: Rules for displaying Receivables invoices are as follows: Receivables document status is Posted, General Ledger date must be before today's date, amount must be greater than zero, valid value in the bill-to location. For information, see Customers Overview, Oracle Receivables User Guide.

Amount Outstanding invoice amount minus any amount already netted
Netting in Progress Netting in progress; invoice amount involved in pending netting transaction
AR Balance Balance in Receivables for third party, shown in selected currency; sum of Amount fields
Netting In Progress Netting transactions total still being processed in Receivables; sum of Netting in Progress fields
Balance (AP-AR) Outstanding balance for selected third party site or sites; Payables Balance minus Receivables Balance
Netting In Progress Netting transactions balance still being processed; Payables minus Receivables transactions
Netting Transactions Opens Netting Transactions window

Creating Netting Transactions Procedure

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To create netting transactions:

  1. Navigate to the Single Third Party Netting Balance window as follows:

    OPSF(I) Single Third Party - Netting Balance

  2. Perform one of the following actions:

  3. Click Find.

    The Single Third Party Netting Balance window appears. If the Third Party Name field is left blank, all records are retrieved.

  4. Select the currency code.

    The functional currency is displayed by default. For example, in France the default currency is FRF for French Francs or EUR for Euros.

  5. Select one or more of the third party Site check boxes.

    All check boxes are selected by default.

  6. Click OK.

    Invoice details and the outstanding third party balance are shown in the selected currency and are displayed in the Payables Invoices and Receivables Invoices regions.

    When adding or removing single third party sites, documents in the Payables and Receivables regions are automatically cleared.

  7. To refresh the information, click OK.

  8. To select a netting transaction type or to select invoices for netting, click Netting Transactions.

    The Objection to Payment option is only available when the Objection to Payment netting type is selected, and the Single Third Party: Objecting STP Allowed profile option is set to Yes.

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  9. Enter data in the Netting Transactions window as described in the Netting Transactions Window Description table.

  10. Click Create Netting Packages.

    The Create Netting Packages window appears with the list of third party documents and amounts in both Payables and Receivables.

  11. If the netting type is set to Objection to Payment, in the Objecting Third Party field, enter the objecting single third party and specify the amount to be reassigned.

  12. If the netting type is set to Assignments, in the Debt Beneficiary Third Party field, enter the debt beneficiary single third party and specify the amount to be reassigned.

  13. Click the up and down arrows for Payables and Receivables documents.

    The Package region displays a netting package with a package number.

    To examine previous netting packages, click Previous.

    The package number changes when Next and Previous are clicked.

  14. To create a new netting package, click Next when the Package Number is equal to the Number of Packages Defined.

  15. When all required netting packages are defined, click Create Batch.

    For information on the Submit Netting Batches window, see the Submit Netting Batches Window Description.

Netting Transactions Window Description

Netting Transactions Window Description
Field Name Description
Objections to Payment Nets Payables invoices for given third party by creating Payables invoices for another third party, called objecting third party
Payment Excesses Nets third party's Receivables invoices and settlements
Assignments Identical to Objections to Payment option except that it is available to all users, not only accounts officers
Supplier Reimbursement Nets third party's Payables invoices and settlements when credit memo received
Trx Match Transaction match; matches Payables invoice number and Receivables transactions number; selected as default
From Available with Trx Match; beginning transaction number for selecting Payables documents; transaction number in Payables is Payables invoice number
To Available with Trx Match; ending transaction number for selecting Payables documents
From Available with Trx Match; beginning transaction number for selecting Receivables documents; transaction number in Receivables is Receivables transaction number
To Available with Trx Match; ending transaction number for selecting Receivables documents
From Available with Reference Match; beginning reference number for selecting Payables and Receivables documents; reference number in Payables is Payables invoice description; reference number in Receivables is Receivables invoice reference number
To Available with Reference Match; ending reference number for selecting Payables and Receivables documents; reference number in Payables is Payables invoice description; reference number in Receivables is Receivables invoice reference number

Create Netting Packages Window Description

Create Netting Packages Window Description
Field Name Description
Single Third Party Displays single third party selected in Find STP window
Currency Displays currency selected in Single Third Party Netting Balance window
Objecting Third Party Required if Objection to Payment is selected in the Netting Transactions window.
Amount Required if Objection to Payment or Assignments is selected in Netting Transactions window
Debt Beneficiary Third Party Required if Assignments is selected in the Netting Transactions window.
Reference Identical to Description on Invoice Entry window in Payables
Trx No Transaction number; identical to invoice number in Enter Invoice window
Amount Transaction amount not currently being netted
Netting Amount Transaction amount currently being netted
Package Number Package number for selected invoices
Reference Identical to Reference on Transactions window in Receivables
Trx No Transaction number
Amount Transaction amount not currently being netted
Netting Amount Transaction amount currently being netted
Number of Packages Defined Total number of packages defined

Submitting Netting Batches Procedure

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To submit netting batches:

  1. Navigate to the Submit Netting Batches window as follows:

    OPSF(I) Single Third Party - Submit Netting Batches

  2. Query a netting batch.

  3. To display netting batch information, select the Details tab.

  4. To display currency information, select the Currency tab.

  5. Enter the exchange rate type, exchange date, and exchange rate for netting batches created in non-functional currencies.

  6. To select a netting batch for submission, select the check box next to the netting batch.

  7. To submit the selected netting batches, click Submit.

    A Payables or Receivables document is generated for all the transactions in the selected netting batch.

Submit Netting Batches Window Description

Submit Netting Batches Window Description, Header Region and Details Tab
Field Name Description
Operating Unit Operating unit of the single third party
Batch Id Unique batch number; automatically generated
Status Batch status; valid values: Available or Complete
Trx Type Netting transaction type
For information on netting transaction types, see Overview
Number Package number
Application Payables or Receivables
Customer Name Single third party name
Site Single third party address reference
Trx Number Transaction number; same as Trx No in Create Netting Packages window
Reference Num Reference number; Payables document description; Receivables document reference number
Amount Netting amount total for each package
Submit Netting Batches Window Description, Currency Tab
Field Name Description
Curr Currency used in netting transaction
Rate Type Currency conversion type; applicable to foreign currency only; defaults from original transaction; updateable only prior to submission
Exchange Date Currency conversion date; applicable to foreign currency only; defaults from original transaction; updateable only prior to submission
Exchange Rate Conversion rate; applicable to foreign currency only; defaults from original transaction; updateable only prior to submission; required field if User selected as conversion type