Netting of Payables and Receivables

[Former Member]

Netting of Payables and Receivables

Netting is the process of offsetting payables with receivables to partially or completely clear the open items. In an organization receivables and payables transactions occur between the organization and the business partners. Such receivables and payables items are posted to the respective customer or supplier account. All the receivables and payables pertaining to a customer account is processed in customer account monitor and similarly the due/open items pertaining to a supplier account is processed in the supplier account monitor. Netting business option enables you to club these receivables and payables to clear all open items.

Prerequisites:

•You have selected netting functionality in your system configuration. To find this option,

1. Go to Business Configuration work center à Implementation Projects view à Implementation project à click Edit Project Scope.

In the Questions step of the guided activity, in Payables and Receivables Processing under Cash Flow Management, select Payment Clearing. Check the statement related to Netting of Payables and Receivables.

  •You have maintained netting relationships between two business partners. You can do so in the customer and supplier master data.

Process Flow

1.      Go to Business Partner Data Work center & find the Supplier (AMS Pvt Ltd) in Business Partner View.

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2.      Click on Create As button & select Account to create the Supplier as Customer.

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3.      Supplier (AMS Pvt Ltd) is now created as a Customer.

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4.     Check the Trade Receivables in the Customer Account in Receivables Work center.

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5.    Also, check the Trade Payables in the Supplier Account in Payables Work center.

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6.     Click on Clear Manually button on either Supplier or Customer account.

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7.      Here, you can see both Payables & Receivables open documents are showing.

8.      So here, you can choose the documents which you want to clear as I have shown in the below screenshot.

9.    You can see the cleared documents in the below screenshot.

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10.      Journal Entries for this posting:

If you have got any issues, you can contact me.

Thanks & Regards,

Anant Patel

SAP BYD CONSULTANT

Phone: +91-9716100326

Email: anant3113@gmail.com

Skype: anant.3105