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If you have customers who are also your suppliers, you can use the A/P Standalone Netting program (P03455) to quickly determine your net position and offset the open Accounts Receivable and Accounts Payable transactions. When you evaluate your net position, you calculate the net amount due from or due to another organization. This allows you and the other organization to mutually resolve your open transactions with a single payment. Using the Accounts Payables and Accounts Receivables Netting process, you can quickly process:
Invoices by using them to offset what you owe your supplier.
Payments to your suppliers that you can adjust, by subtracting what is due from them.
When you perform the netting process, the system closes transactions in one system and creates a corresponding original document in the other system for the negative amount.
For example, if you owe your supplier/customer 1,000 and your supplier/customer owes you 700, you can use the netting process to generate a debit memo in the Accounts Payable system for -700, and create a receipt document for 700 that closes the invoice in the Accounts Receivable system. When you process payments for the supplier, the system generates one payment for 300.
Receivables and payables netting consists of:
Netting payables and receivables
Printing netting reports
See Also:
Netting Payables and Receivables in theJD Edwards World Accounts Receivable Guide for information about netting for receivables