Hi Hasan,
I understand that the concept of AP and AR Netting is only new under Oracle R12.
Please, could you tell me how to solve the problem brought about by this concept under Oracle 11i? I mean, if my business partner is at the same time a customer and a supplier, and we both owing each other. Thank you.

Hi Gavrobere,

Prior to Release 12, there were several netting solutions in the eBusiness Suite:

Contra-Charging
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This Globalization feature was originally a solution for Germany in Release 11, but then it became a Regional Globalization feature in Release 11i.

US Federal Financials Netting
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This solution specifically addresses the needs of US requirements.

In Release 12, AP/AP Netting has become "core" functionality and is the only netting solution available, which means Contra-Charging and US Federal Financials Netting are all replaced by this solution. Each of those features has a migration path to the Release 12 Netting feature.

You may go thru the attached whitepaper written by me sometime back.

Cheers!
Shanmuga

Attached white paper and complete simulation sheet.

Thank you very much Shanmuga. I try to open the attached file but it is not opening. Do you mind sending it to my e-address? Please, let me know. Cheers

Thank yo Shanmuga.

Gavrobere, here is how contra-charging works in a nutshell:

Contra Charging window is used to physically match the customer to the supplier. Also you allocate an amount for contra charging. System will populate the AR and AP interface tables to create credit memos.
You would then import invoices in AR and AP using respective import programs. Post the imported credit memos to Oracle General Ledger using standard functionality. Contra Netting Report is available to view netted contra charging transactions and to verify that the contra charging has been carried out successfully in Oracle Receivables and Oracle Payables.

Hasan

Hi Gavrobere,

You may download the same from the following Metalink Note:

AP/AR NETTING – A TECHNICAL INSIGHT (731191.1)

Cheers!
Shanmuga rajas.erp@gmail.com

"When the student is ready, the teacher appears"