Skip to main content

R12 -AP /AR Netting an Advance version of Contra

Introduction : 

Organisations always Aim for the follwing objects. 
1.Reduce the cost to improve the Margin 
2.Quick decesion Making. 

Therefore To reduce the Reconciliation process time  so that decesion making would be faster and avoid manual errors Oracle has introduced AP/AR Netting  for the Parties who acts as Supplier and Customer for the Organisation. 

What is AP/AR Netting: 

In the business if a party is a supplier and also customer then the amount need to pay and elgible to receive from that Party would need to be knocked off and only the left amount received or paid need to  be settled in cash. 

Oracle AP/AR Netting is  the process  where in the AP , Party who is a supplier  and also in AR where Party is a customer has some balance in their Account. 
To do the settlement both AP and AR Balnce need to be knocked off and rest amount need to be paid. 

How to do AP/AR Netting: 
  • Define a netting control account
  • Define the exchange rate types if using multi-currency netting.
  • Define Netting bank Account
  • Define payment method
  • Define and assign sequencesBefore multiple customers are netted, you must set up a paying relationship for the customers Enable the Allow Payment of Unrelated Transactions Receivables System Option.
  • Define Netting Agreement
Note: If you need Document for the same please reach me@ caoraclefin@gmail.com 


When to do AP/AR Netting: 
This can be used for all parties who has balance either directly in APand AR or also party relationship company has the balance. 

Advantages: 

  • Reconciliation becomes easier as the number of transactions would reduce after applying the Netting.
  • No Manual intervention is required.
  • As there is manual intervention is required risk of errors is very less.
  • Unlike Contra Customer needn't be defined in the same name as supplier for netting
Disadvantage: 

  •    This is applicable only when the party is available as  a Customer and suplier with in  a single operating Unit.
Backend details: 

The following fun tables were involved in the AP/AR netting tables: 
  •   fun_net_customers_all
  •   fun_net_suppliers_all
  •  fun_net_batches_all
  •  fun_net_agreements_all
Note:The most important columns for joining the FUN tables are Agreement_id and Batch_id. 
Labels:

Comments

  1. rajeevSeptember 13, 2019 at 10:52 PM

    Oracle Apps R12 and Fusion Cloud Self Paced Training Videos by Industry Experts. Please Check https://www.oracleappstechnical.com

    ReplyDelete

Post a Comment

Popular posts from this blog

Create Accounting for a Payment generates errors 95333 and 95359

Create Accounting for a Payment generates errors 95333 and 95359 Error: 95333: A conversion rate does not exist to convert USD to AUD for the conversion type Corporate and conversion date 20-MAR-09 for line -25. Please use the Daily Rates form in General Ledger to enter a conversion rate for these currencies, conversion date and conversion type. 95359: There is no accounted amount for the subledger journal entry line. Please inform your system administrator or support representative that: The source assigned to the accounting attribute Accounted Amount has no value for extract line number 88547. Please make sure the source assigned to the accounting attribute Accounted Amount has a valid value, or assign a different source to this accounting attribute. Solution: 1. Specify a conversion rate for the currencies and conversion date mentioned in the error message 95333 Navigation under the General Ledger responsibility: Setup > Currencies > Currency Rates Manager > Daily Rates ...
15 comments
Read more

Public API’s for FA Transactions

Public API’s for FA Transactions So far Oracle FA is have all the good things except the lack on reporting.Oracle FA is now offer lot of public API's that can be used to interfacing with third party or Oracle application other modules. Here are some of transaction's API's:   Additions API if you have requirement to add assets directly via PL/SQL then use  FA_ADDITION_PUB.DO_ADDITION. If you have selected the Allow CIP Assets check box on the Book Controls window of a tax book when adding CIP assets using the Additions API, the this API automatically adds those CIP assets to that tax book at the same time that they are added to the corporate book. Adjustments API you can make cost adjustments to your assetsdirectly via PL/SQL using  FA_ADJUSTMENT_PUB.DO_ADJUSTMENT  for any  process adjustment. Detail can be found in appendix H) You can use this API if you have a custom interface that makes it difficult to use with the existing Oracle Assets interfaces for adjusti...
Post a Comment
Read more

AP Table Relation Oracle Apps

AP Table Relation Oracle Apps ORACLE PAYABLE TABLE RELATION Source Table Dependent Table Condition AP_INVOICE_LINES_ALL AIL ZX_LINES_SUMMARY ZLS AIL.invoice_id = ZLS.trx_id and  ZLS.application_id  = 200 and  ZLS.entity_code  = 'AP_INVOICES' and  ZLS.event_class_code  in ('STANDARD INVOICES', 'PREPAYMENT INVOICES', 'EXPENSE REPORTS') and  AIL.summary_tax_line_id = ZLS.summary_tax_line_id AP_INVOICE_LINES_ALL AIL ZX_LINES ZL AIL.invoice_id = ZL.trx_id and  ZL.application_id  = 200 and  ZL.entity_code  = 'AP_INVOICES' and  ZL.event_class_code  in ('STANDARD INVOICES', 'PREPAYMENT INVOICES', 'EXPENSE REPORTS') and  AIL.line_number = ZL.trx_line_number AP_INVOICE_DISTRIBUTIONS_ALL AID ZX_REC_NREC_DIST ZD AID.invoice_id = ZD.trx_id and  ZD.application_id  = 200 and  ZD.entity_code  = 'AP_INVOICES' and  ZD.event_class_code  in ('STANDARD INVOICES', 'PREPAYMENT INVOICES', 'EXPENSE REPORTS') and...
Post a Comment
Read more