Hello Hasan,

In you AP AR Netting video regarding setup, you mentioned that...the Netting Control account is a Balance Sheet account. You stated that this account is
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"Usually created as a Liability account."
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I am a bit confused. I would have thought it would be defined as an Asset account, only because it is supposed to resemble a CASH account.
Netting Control is a kind of replacement for the CASH account.
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Can you explain WHY it's usually classified as a Liability account instead of an Asset account.

Thank-you
Charlie

ps. I was just curious. Trying to clear up some confusion.

Netting account has to be a balance sheet account. It is a clearing account anyways. I am not sure if making it an asset vs liability will throw anything off. I will raise a reg flag if someone creates a netting account as anon-Balance sheet account. Otherwise I would consider it a non-issue from Oracle E-Business perspective. I will let accountants debate on this account being asset or liability.

Thanks Hasan,

I fully understand that it should be a Balance Sheet acount. I was thinking it makes more sense for it to be an Asset account.... However, I'm not an accountant.
So as you said... let the accountants debate the issue of it being either an Asset or Liabilty account.

Cheers :)
Charlie