1 Overview of Netting

This topic provides an overview of the Netting module.

The Netting module of the Oracle Banking Cash Management system involves setting off the receivables or payables between two parties. The two parties have a bilateral trading relationship with each other, i.e., each party plays the role of both supplier and buyer. It ascertains the party who owes obligation in a Bi-party agreement. It reduces the absolute number and volume of payment transactions required to settle those receivables and payables, leading to significant cost savings.

The creation of a netting transaction involves the maintenance of netting rules linked to a corporate that filters out the eligible receivables and payables to be considered for the 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.

Dashboard

Netting Dashboard displays the status of netting transactions initiated post trigger of the Netting Calculation batch.

Figure 1-1 Netting Transactions

Description of "Figure 1-1 Netting Transactions"

For more information on fields, refer to the field description table.

Table 1-1 Netting Transactions - Field Description

Field	Description
From Date	Displays the start date from when the netting transactions have been filtered.
To Date	Displays the end date till when the netting transactions have been filtered.
Corporate	Displays the corporate ID linked to the netting transaction.
Counter Party	Displays the counter party ID linked to the netting transaction.
Awaiting Acceptance	Displays the number of netting transactions that are awaiting acceptance.
Awaiting Settlement	Displays the number of netting transactions that are awaiting settlement.