Partial Amounts and Upper Limits in Netting Settlements

Establish amount limits for netting transactions for each supplier. Allow modifications to individual transactions to offset partial document amounts when necessary. These improvements help support local netting business practices in countries including Japan.

The supplier limits are defined at the supplier or supplier site level using Global Descriptive Flexfields (GDFs).

This table provides the supplier limits that are derived based on the agreement setup and the limit setup.

Agreement defined for	Limit defined for supplier site	Limit defined for supplier	Limit defined from
Supplier site	Yes	No or Yes	Supplier site
Supplier site	No	Yes	Supplier
Supplier	No or Yes	Yes	Supplier
Multiple sites of same supplier	No or Yes	Yes	Supplier
Multiple suppliers	No or Yes	No or Yes	No limit is derived

Adjust the netting amounts during review and optionally make partial payments. The Netting Settlement spreadsheet introduces a new column for both the Payables and Receivables worksheets. You can use this column to update the amounts for individual invoices and transactions if you want to pay these amounts partially.

You must update both worksheets so that the total netting amount is equal for both Payables and Receivables. If you reduce the Payables side by 1000, you must also reduce the Receivables side by 1000.

The Manage Netting Settlements page now shows the Open Payables Amount, Open Receivables Amount, and Proposed Netting Amount for settlements in Selected status.

This feature supports local netting business practice in Japan for chargeable subcontracting, which requires an upper limit to be defined per supplier every month.

To enable partial amounts and upper limits in netting settlements, follow these steps:

1. Use the Opt In UI to enable this feature.

   1. Click Navigator, My Enterprise, New Features.
   2. On the Features Overview page, select your offering to review new features specific to it. Or, you can leave the default selection All Enabled Offerings to review new features for all offerings.
   3. On the New Features tab, review the new features and check the opt-in status of the feature in the Enabled column. If a feature has already been enabled, you will see a check mark. Otherwise, you will see an icon to enable the feature.
   4. Click the icon in the Enabled column and complete the steps to enable the feature.
2. For netting limits, create and enable a new lookup code JE_37272153 for the ORA_ERP_CONTROLLED_CONFIG lookup type.
3. Set up the limits at the supplier level or supplier site level according to the netting agreement definition.
4. The netting agreement must have the Netting Currency Rule "Use single currency" and the Invoice Currency value must match the Netting Settlement Maximum Settlement Currency value defined for the supplier or supplier site. The Settlement Currency, if specified on the agreement must also match.

Here are some tips and considerations.

• The netting limit, if defined, is applied to each settlement created for the supplier.
• The netting limit is not applied if the Netting Currency Rule is Net within each currency or if the Allow early settlement discount option is enabled on the agreement.
• If you have invoices with discounts and the netting agreement has the Allow early settlement discount enabled, the amount you update would be considered as the actual amount to be paid excluding discount.
• If you update the amounts for a settlement, then the updated amounts would be used for the settlement even if there is a netting limit defined.