Financials Module: Accounts Receivables

Lab AR-12 AP/AR Netting

Objective: To create a new Ap/AR Netting agreement and
test the same by creating a new Payables Invoice and
30-45 minutes
Receivables Invoice.

Instructions:
• In this lab you will do the setup for creating a new AP/AR Netting agreement and will test
the feature by creating a new Payables Invoice and Receivables transaction.

Create a Customer:

1. Responsibility: Receivables, Vision Operations (USA)

2. Navigation: Customers
Customers

Use the existing Customer “ABC Corporation Americas” for the Lab testing.

Create a Supplier:

1. Responsibility: Payables, Vision Operations (USA)

2. Navigation: Suppliers
Entry

Use the existing Supplier “3M Health Care” for the Lab testing.

Define a new Netting ank Account:

1. Responsibility: Payables, Vision Operations (USA)

2. Navigation: Setup -> Payment
Bank Accounts
3. Click on “Create” button
4. Enter the following information:

Country United States

Bank Name Bank of America
Branch Name New York

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5. Click on the “Continue” button.

6. Enter the following information: (Account Owner & Use)

Bank Account Owner Vision Operations

Account Use Check “Payables” and “Receivables”

7. Click on the “Next” button.

8. Enter the following information: (Account Information)

Account Name XX_NETTING_ACCOUNT

Account Number Enter 8 digits unique number as your Bank account
number
Currency USD
Multiple Currencies Allowed N

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9. Click on the “Next” button.

10. Enter the following information: (Account Controls)

Cash Enter some Cash account

Netting Account Yes

11. Click on the “Next” button and save the default values till “Account Access” section.
12. Enter the following information: (Account Access)

Organization Vision Operations

Check “Payables” and “Receivables” checkbox

13. Click on “Finish”.

14. Your record is saved.

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Enter a Customer Invoice:

1. Responsibility: Receivables, Vision Operations (USA)

2. Navigation: Transactions
Transactions
3. Enter the following information:

Source Manual
Date 15-Sep-2008
GL Date 15-Sep-2008
Class Invoice
Type Invoice
Currency USD
Legal Entity Vision Operations
Bill To ABC Corporations Americas
Payment Term Immediate

4. Click on “Line Items” Button.

5. Enter the following information:

Description Testing AP AR Netting

Quantity 1
Unit Price 750

6. Click on “Distributions” Button.

7. Enter the Account entries in case it is not defaulted.
8. Click on “Complete” button.
9. Your transaction must be completed after the above.
10. Save the record.

Enter a Payables Invoice:

1. Responsibility: Payables, Vision Operations (USA)

2. Navigation: Invoices
Invoices
3. Enter the following information:

Operating Unit Vision Operations

Type Standard
Trading partner 3M Health Care
Invoice Date 15-Sep-2008
Invoice Number XX15SEP08A

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Currency USD
Invoice Amount 1000
GL Date 15-Sep-2008
Payment Term Immediate
Payment Method Check

4. Enter the Lines and Distribution details of the Invoice.

5. Click on the Actions button and Validate the Invoice
6. Save the record

Creating a Netting Agreement:

1. Responsibility: Payables, Vision Operations (USA)

2. Navigation: Payments
Entry
Netting -> Netting Agreement
3. Create a new Netting agreement “XX_NETTING”
4. Enter the information as shown in the diagram below:

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5. You do not need to provide the Site for your Customer and Supplier
6. For Payables, Add Invoice Type “Standard”
7. For Receivables, Add Transaction type “Invoice”.
8. Save the record.

Create a Netting Batch:

1. Responsibility: Payables, Vision Operations (USA)

2. Navigation: Payments
Entry
Netting
Netting Batch
3. Create a New Netting Batch
4. Enter the information as shown in the diagram:

5. After submission you can requery for your Netting batch, and monitor its Status using View
requests.
6. When the status changes to “Selected”, click on the Update Icon and review the transactions
that have been selected under the Payables and Receivables tab.

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7. Click on the “Submit” button to confirm the Netting batch.

9. After the concurrent program completes, check the status of the Netting Batch, the status
should change to “Complete”.
10. Query the Receivables transaction and the Payables Invoice and check the payments and
Receipts information.

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