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    Dhilip Kumar
    AP/AR Netting
    Topic posted October 3, 2019 by Dhilip KumarRed Ribbon: 250+ Points, last edited October 3, 2019, tagged Collections, Payables, Receivables 
    55 Views, 4 Comments
    AP/AR Netting
    AP/AR Netting using "Use Single Currency” option in Netting Agreement

    AP/AR Netting using "Use Single Currency” option in Netting Agreement

    Netting is NOT working correctly if I select “Use Single Currency”.

    We have a business scenarios to net the AP/AR invoices. I have performed above Netting agreement setup and created the Business scenarios as follows:

    • Ledger Currency: USD
    • Netting Agreement Currency: EUR
    • AP Invoices are created in INR
    • AR Invoices are created in GBP & INR & EUR.
    After performing above steps and I ran Netting settlement but all currency invoices are not fetching in the netting settlement.
    As I selected “EUR” currency in netting agreement and its fetches only EUR AP & AR Invoices and don’t fetch other currency Open invoices. 
    I referred one of the Metalink note id, it says that settlement within currencies is possible. It’s not possible to meet above requirement.
    What is the use of “Use Single Currency” under Netting Currency Rule.
    Same requirement is possible EBS and why it’s not possible Fusion AP/AR Netting.
    Attached steps performed in Demo instance for reference.  Can you please suggest way to meet above requirement? 



    • Julien Dubouis

      Hi Dhilip,
      This is intended functionality : Netting can only be performed in the same currency. By using single currency, you only select the AR invoice, there is no AP invoice in EUR. In your context only the invoices in INR could be netted. I attach the netting topical essay and copy paste the content :

      Select the ‘Netting Currency Rule’. If you want to settle for invoices and transactions for a particular currency (e.g. GBP), then you can set the netting currency rule to ‘Use Single Currency’. You can then select the ‘Currency’. If you have invoices in transactions for multiple currencies, you can select ‘Net within each currency’. For example if you have GBP and EUR invoices/transactions that you want to net, a settlement will be created for each currency (one for GBP and another for EUR). Both settlements can then be treated independently of one another. Ensure the Netting Bank Account has the Multicurrency checkbox checked. Netting will only net invoices of the same currency together i.e. GBP with GBP or EUR with EUR. It will not net GBP with EUR. 



    • Dhilip Kumar
      Thanks for Quick Reply.
      I referred Meta Link Note ID (EBS): AP/AR Netting Common Questions and Problems (Doc ID 1067767.1) (Refer Point 9)
      9.  Can I net transactions of different currencies?
      Yes, please review Netting Currency Rule in agreement and select option Convert to Accounting Currency. then open balance on each transaction is converted to the the Accounting currency and the netting currency of the batch = Accounting currency.
      Settle Netting Batch Finishes with Error "Cross currency rate is null" When Netting Agreement's Netting Currency Rule is "Convert to Accounting Currency" (Doc ID 2280702.1)
      Convert to Accounting Currency option is not there in Oracle Fusion Netting Agreement. Just want to check why this option is unavailable.  
      As my customer uses EBS currently and shifting to Fusion.  Currently they uses this feature in EBS and they would like to use same feature in Fusion as well.
      Fusion netting agreement screenshot attached for reference.
      Please suggest.
      • Eamon Kearney

        Hi Dhilip,

        The MOS note is related to eBus rather than Cloud Netting, remember these are two different Products and you cannot assume functionality will be exactly the same across the systems.

        Julian is correct, Netting is only transacted in a single currency i.e. only GBP AP invoices will net with GBP AR invoices, only USD AP invoices will net with USD AR invoices etc.



    • Dhilip Kumar

      Thanks for your reply Eamon.

      Yes, you are correct as EBS and fusion are different products.

      Currently business uses EBS and using that functionality so they are expecting same feature in Fusion as well.  If that feature is unavaible, we need to suggest them work around in Fusion so my question here is why same feature is not incorporated in Fusion similar to EBS.

      IF that feature is not available and please suggest workaround.