Partial Amounts and Upper Limits in Netting Settlements
Establish amount limits for netting transactions for each supplier. When necessary, allow modifications to individual transactions to offset partial document amounts. These improvements will 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).
The limits would be derived based on the agreement setup and the limit setup.
| Agreement defined for | Limit defined for supplier site | Limit defined for supplier | Limit derived 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 |
.
The Netting Settlement spreadsheet has a new column introduced for both the Payables and Receivables worksheets, where you can update the amounts for individual invoices and transactions if you want to pay them partially.
Netting Settlement Payables Worksheet
Netting Settlement Receivables Worksheet
You must ensure that you update both worksheets so that the total netting amount for both Payables and Receivables is equal. 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 the Proposed Netting Amount for settlements in Selected status.
Additional Columns in the Manage Netting Settlements Page
Business benefits include:
- Support local netting business practice in Japan for chargeable subcontracting, which requires an upper limit to be defined per supplier every month.
- Adjust the netting amounts during review and optionally make partial payments.
Steps to Enable
Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.
Offering: Financials No Longer Optional From: Update 26B
For netting limits, create and enable a new lookup code JE_37272153 for the ORA_ERP_CONTROLLED_CONFIG lookup type.
Lookup Code for Netting Limits
Set up the limits at the supplier level or supplier site level according to the netting agreement definition.
Supplier Limit
Supplier Site Limit
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.
Netting Agreement
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 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.
Key Resources
- Based on Idea 512093 from the Tax & Global Idea Lab on Oracle Cloud Customer Connect
Access Requirements
No new access requirements