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 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.