how to make netting?

  • 14 January 2022
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Userlevel 3
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How can I make netting and what is the differens between netting and offset?


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Userlevel 7
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Hi, 

Netting typically happens as a process to net AR Invoices and AP invoices for the same entity.  For example a customer who also sells you goods / services. 

Typically for netting you want the customer / supplier connected, a common way to connect is the association number. Both customer and supplier would have the same association number.  But IFS does allow a non connected netting as an option.  

An offset would be either customer invoices or supplier invoices but not customer invoice offset with supplier invoice.  AR Invoice netted with AR credits or other, but all AR. Or all AP debit memo netted against invoices. 

 

The how is fairly easy take 100 of one and match to 100 of the other so that the total payment amount is always 0.   For example assume AR of 1000 and AP of 3000. You can net any amount up to 1000 of the ar with the same amount for the AP..  Net 10 AR to 10 AP all good, 

Similarly with an offset assume + invoices total 1000 and - invoices total -500. You can offset any amount (for example +10 and -10) that totals 0. Offsets work for AR or AP not AR with AP. 

Depending on the release, you would select a corresponding screen. 

In IEE we have the netting screen where you have a customer tab and a supplier tab. 

In IEE you can do the offset in an offset screen or its probably easier in mixed payment.

IEE Screen examples

Best regards, 

Thomas

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