1. Accounts Receivable Implementation Guide
  2. Netting (NC)

Netting (NC)

You use the netting AAI (NC) as a suspense account until the netting transaction is complete. For example, if you have a credit (RM document) in Accounts Receivable, and you want to reimburse a customer for the amount, run the Generate Reimbursements program (R03B610). The system:

  1. Debits the A/R trade account (AAI RC) and credits the suspense account (AAI NC).

  2. Debits the suspense account (AAI NC) and credits the Accounts Payable (AP) trade account (AAI PC).

  3. Debits the Accounts Payable trade account (AAI PC) when the voucher is paid.

    Because no expense side exists for the voucher, the system uses the NC netting account as the expense for the voucher.

The system also uses this AAI when you perform AR or AP netting using the Manual Netting program (P03B455).