2.2.22.1 Including Netting Amount in Facility’s Netting Contribution

This topic describes about the detailed information on including netting amount in facility's netting contribution.

User can set the available amount under a Facility to include the Netting Amount as well. To enable this feature you must enable the Netting Required check box in the following levels:

• Account Netting level
• Liability level
• Facility level

Once the netting option is enabled in the above levels the Netting amount maintained as a part of Account Netting screen is added to the available amount of the facility in facility currency. The Netting Amount field in the facility screen is displayed in the Netting Contribution field for the facility in facility currency.

Account Netting

When you authorize an account netting transaction with contract type AC and netting enabled, then the netting amount is included in the facility in facility currency after netting has been enabled in Liability level & Facility level. Here the Netting Amount is updated accordingly.

When you modify an Account Netting Record and deselect the Netting check box, then the system automatically subtracts the netting amount from the Available Amount and the Netting Amount for the corresponding facility

When you modify an Account Netting Record and select the Netting check box, then the system automatically add the netting amount to the Available Amount and the Netting amount for the corresponding facility.

When an Account Netting Record is closed and authorized, the system automatically subtracts the netting amount from Available Amount and the Netting Amount for the corresponding facility.

When an Account Netting Record is re-opened and authorized, the system should automatically add the netting amount to Available Amount and the Netting Amount for the corresponding facility.

Facility

When the Netting option is deselected and the modification is authorized, the system automatically sets the netting amount to zero and recalculates the available amount. Likewise, when the netting option is enabled, the system updates the netting amount based on all the Account Nettings which have Netting option enabled for the facility.

Liability

When the Netting option is deselected and the modification is authorized, the system automatically sets the netting amount of all its facilities to zero and recalculates the available amount. Similarly, when the Netting option is enabled, the system updates the netting amount based on all the Facilities and Account Nettings records, which have Netting option enabled for the liability.