Netting of AP/AR—Key Exercises

IMPORTANT
It is extremely important that you set up and work within your own company and with your own supplier to maintain your data integrity. If you work with any other objects, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data be isolated in your own company.

Basic Data Setup


Enter a New Customer to be Used for Netting

Purpose: The purpose of this exercise is to show you how to set up the basic data required for running this particular functionality.

Windows:
Customer

  1. Enter a new customer according to the exercise.
  2. Enter a customer ID and an association number that is unique to you.
  3. Save the information.

General exercise for Customer


Enter a New Supplier to be Used for Netting

Purpose: The purpose of this exercise is to show you how to set up the basic data required for running this particular functionality.

Windows:
Supplier

  1. Enter a new supplier according to the exercise.
  2. Enter a supplier ID and then the same association number that you have on your customer. A message appears indicating that another business partner with the same association number is already registered. You are prompted to indicate whether you want to use the same association number.
  3. Click OK.
  4. Click the Payment tab. Select the Netting Allowed check box.
  5. Continue entering the supplier.
  6. Save the information.

General exercise for Supplier

Required Data


Enter and Authorize Supplier Invoices

Purpose: The purpose of this exercise is to show you how to enter supplier invoices to be used in the exercises below. The invoices/installments must also be authorized for payment.

  1. Enter a supplier invoice.

General exercise for Arrival Entry Supplier Invoice 
General exercise for Post Supplier Invoice
General exercise for Authorize Supplier Invoice for Payment


Create a Supplier Payment on Account

Purpose: The purpose of this exercise is to show you how to enter a supplier payment that is not matched with any supplier invoice/installment.

Windows:
Supplier Payment

  1. Open the Supplier Payment window, and create a new record. 
  2. In the General tab, enter a cash account, or select one from the List of Values. 
  3. In the lower portion of the window, create a new record.
  4. In the Payment Amount field, enter the amount of the payment.
  5. Click the Transaction tab, and create a new record.
  6. Select the checkbox New Payment On Account.
  7. In the Identity field, enter your supplier.
  8. In the Amount field, enter the same amount you want to pay.

Note: The remaining amount in payment currency should now be zero.

  1. Save the information.
  2. Payment information is displayed in the Message window. Confirm by clicking OK.
  3. Return to the General tab. The voucher type and related voucher number are now displayed.


Manual Customer Invoice Using VAT

Purpose: The purpose of this exercise is to show you how to enter a customer invoice to be used for netting.

Windows:
Manual Customer Invoice

  1. Enter a customer invoice.

General exercise for Manual Customer Invoice 


Create a Customer Parked Payment

Purpose: The purpose of this exercise is to show you how to set up the basic data required for running this particular functionality.

Windows:
Customer Payment

  1. Enter a new parked customer payment.

General exercise for Customer Payment 

Main Exercise


Netting of AP/AR

Enter Netting

Purpose: The purpose of this exercise is to show you how to create a netting between customer ledger items and supplier ledger items.

Windows:
Netting

  1. Open the Netting window, and create a new record.
  2. Enter the ID of your supplier, or select it from the List of Values. If you do not use Non-Restricted Netting, the system automatically displays the customer ID for the netting.
  3. If Non-Restricted Netting is used, enter the identity of the customer to be used for the netting, in the Customer ID field.
  4. Enter the cash account used for netting. The default payment currency appears, and the voucher date is the same as the payment date.
  5. Click the Supplier Invoices/Prepayments tab.
  6. Right-click and then click Select Batch to view open invoices/installments for the supplier. Populate if needed to get invoices/installments displayed. 
  7. Select your invoice/installment and your payment on account.
  8. Click the Customer Invoices/Prepayments tab without saving.
  9. Right-click and then click Select Batch to view open invoices/installments for the customer. Populate if needed to get invoices/installments displayed. 
  10. Select your invoice/installment and the parked customer payment.
  11. Verify that the value in the Remaining Amount on Payment field is zero. If not, adjust the paid amount for one of the ledger items. In this case, there will be a remaining amount on the ledger item for which the amount was changed.
  12. Save your changes. An information window appears with netting information.
  13. Click OK to confirm.

Note: Instead of using the Select Batch function to find the ledger items, you can manually enter each line, entering the series ID, the number and the Installment ID for the ledger items to be netted.


Cancel Netting

Purpose: The purpose of this exercise is to show you how to cancel a netting between customer ledger items and supplier ledger items.

Windows:
Cancel Netting

  1. Open the Cancel Netting window and populate.
  2. Highlight the netting you want to cancel.
  3. Right click and then click Cancel.
  4. A window is displayed with voucher information. Click OK to confirm.
  5. A message is now displayed with payment information. Click OK.