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Closing Nets

Once you select (by manual or automatic methods) and approve nets, you close them in both Payables and Receivables.

You close payables nets by creating payment selection criteria and running Pay Cycle Manager. If there is any remaining payables net balance (balance is less than or greater than zero), you must create a new payment selection criteria and run Pay Cycle Manager again.

To close receivables nets, you must run the Request Receivables Update process, which updates the customer information with the invoice netting payment created in the netting process.

The Net Closing Process also contains the multicurrency net adjustment functionality. For nets involving multiple currencies this functionality evaluates if the payables and receivables accounting entries are in balance, given a defined currency conversion rate. The system then automatically adjusts them as necessary prior to payables and receivables posting.

Understanding the Net Closing Process in Pay Cycle Manager

Here is a more detailed look at the Netting Closing Application Engine processes, (TR_NET_CLOSE) and (TR_NET_ARCLS), which launch from Pay Cycle Manager (AP_APY2015). These processes close the netting population of the AR and AP transactions that are selected for netting. Closing refers to updating the transactions in the netting tables as well as updating transactions in the AP and AR tables. Inserts are done in certain situations. (For example, if an AP payment is greater than the AR balance, PeopleSoft will insert a new line in AP for the remaining balance not offset by the receivable amount.)