The payables and receivables netting feature enables the automatic netting of payable and receivable invoices within

a business enterprise or trading partners. Defining a netting agreement ensures the netting business rules and transaction criteria are tailored for netting process. The netting process automatically creates the payables payments and receivables receipts required to clear a selected number of payables and receivables invoices.

Below are features to be offered from the global ERP netting functionality: 1) Choosing the Netting Basis Provides flexibility to select the netting basis On the basis of date: y Oldest to most recent y Most Recent to oldest On the basis of amount: y Amount ascending y Amount descending 2) Trading Partner Approval y y y y Report of all transactions proposed to be netted can be sent to trading partner Review & reconcile transactions with ERP Approve or rejection of netting Approval required flag to be checked during set up

3) Netting with Group of Companies y y y Netting can be done with multiple trading partners Prioritize parties for netting Mainly useful if trading partners are related or under a single parent company

4) Reporting a. Proposed Netting Report y Snapshot of all transactions proposed to be netted y Sent to the trading partner b. Final Netting Report y Details of all netted transactions y Documentary evidence for Compliance & Audit Trail

5) Multi currency netting

For netting transactions accounted in different currencies then user has three options: y y y Net Within Currency Use Single Currency Convert to Accounting Currency

6) Benefits Creation of automatic Payments in AP and Receipts in AR resulting in y y y Enhanced operational efficiency Reduction in manual data entry & associated errors Reduction in admin cost

Ease of Setup and reusability Better idea of cash flows resulting in y y y Better financial planning & budgeting Reduction in interest on debt obligations Reduction in bank charges

Audit Trail