Example of AR Netting Accounting Entries

This example describes the AR netting process and the corresponding accounting entries that the system creates for each step of AR netting.

In this example, you:

• Bill a customer for 1,500 by creating an invoice (RI 101).

• Enter a voucher (PV 001) for 1,000 after you receive an invoice from the same customer, who is also the supplier.

• Receive a payment from the customer for 500 and enter it as a cash receipt (RC 201).