1 Overview of Netting

This topic describes the information on the overview of Netting module.

The Netting module of the Oracle Banking Cash Management system involves setting off the value of multiple positions or payables between two or more parties. It ascertains the party who owed obligation in a Bi-party agreement. It reduces the absolute number and volume of payables and receivables transactions leading to significant cost savings.

Creation of netting transaction involves maintenance of netting rules linked to a corporate that filters out the eligible receivables and payables to be considered for netting process. Rules can be configured through Netting agreement master maintenance and once created the same can be linked to a corporate and counterparty through netting decisioning UI. Based on the Netting Agreement and Decisioning maintenances, the netting transactions is created for corporates and their counterparties.

The various stages of Netting Transactions are as follows:

1. Creation/Registration: The transaction gets created/registered at the time of trigger of Netting Calculation batch.
2. Acceptance/Rejection: The transaction is available on Oracle Banking Digital Experience for a corporate user to accept or reject.
3. Suspension: The transaction will be in the suspended stage post elapse of netting acceptance cut-off days.
4. Settlement: The accepted netting transactions and the associated receivables and payables will be netted off through system-generated payment transactions post execution of settlement batch.