What is AP/AR Netting
Oracle AP/AR Netting allows you to net your Payables invoice
balances against your Receivables invoice balances for those Customers who are
also your Suppliers.
For example, If you have a customer who is also your
supplier, then rather than him paying you and then you paying him, AP/AR
netting allows you to pay the net difference between how much you owe the
supplier and how much he owes you. After establishing a netting agreement with
such trading partners, you set up the agreement and the rules associated with
it in eBusiness Suite and you can then start to net AP and AR transactions.
Below is a conceptual diagram of how this works.
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| AP AR Netting Business Process |
| Netting Business process |
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