Prerequisites for Managing Bilateral Netting

Before using netting, you must define your:

• General Ledger business units.

• Payables Suppliers, Supplier IDs, and business units.

• Receivables Customer IDs and business units.

• Market rates and netting account currency codes, to facilitate multicurrency netting.

• Netting accounts.

In addition, before defining a bilateral netting relationship, you must set up the following in Payables and Receivables:

1. Enter a voucher on the Vouchers page in Payables.

2. Enter an invoice on the Online Pending Item Entry page in Receivables or interface an invoice from your billing application into Receivables.

3. Run the Receivables Update process (AR_UPDATE) using the Receivables Update page.