2.8.1 Netting Details

Netting is the process of offsetting the receivables with the payables for a counterparty to generate a single accounting entry in the counter party’s account. Oracle Banking Treasury Management supports you to net the contracts that satisfy certain conditions. The Netting facility is useful at the time of contract settlement. Based on the requirement, you can net two or more deals at the time of settlement if the contracts are:

• Linked to the same counterparty (customer)
• Have the same Value Date and
• In the same currency (currency-wise netting) or
• Involve the same currency-pair (pair-wise netting)