Netting

Use

The Netting function allows you to group together transactions from the Money Market, Foreign Exchange, Derivatives , and Securities areas and to pay them collectively. It is used to simplify payment processing.

Situations can arise where several financial transactions are to be paid collectively; this happens especially in the case of transactions with business partners that are not house banks, i.e payments need to be exchanged .

Example Example

Example:

End of the example.

  • Fixed-term investment in EUR and fixed-term borrowing in EUR

  • You balance the open payment amounts and only pay or receive the net amounts

  • Advantage: Saving of transaction costs or bank charges

Prerequisites

The transactions need to have the following matching characteristics:

  • Company code

  • Business partner

  • (Payment) currency

  • Value Date: Recipient

  • Identical payment details

    • Payment methods must be the same

    • Payee (bank details in the item)

    • It is particularly important to note that all the transactions you want to net must be able to generate payment requests since netting transactions are paid using the Payment Program for Payment Requests .

    • Individual payments cannot be made.

  • The financial transactions must have obtained Settlement status.

Features

  • Assigning individual transactions to a netting transaction enables the payment program to process the payment requests collectively. To do this, all the payment flows or requests involved in the same netting transaction are assigned the same unique key. This key is written in the Grouping field and replaces the existing field contents. This ensures that the payment requests belonging to one netting transaction are not grouped with other payment requests. The Payment Program for Payment Requests only groups requests that have the same company code and business partner (as mentioned in the prerequisites section) and the same Grouping field entry.

    See also: Payment Request

  • You cannot make subsequent changes to netting-relevant data in the individual transactions (especially due dates, amounts, house bank data and payment data ).

  • A transaction linked to a netting transaction is shown when processed. To display this, choose Start of the navigation path Environment Next navigation step Object Links. End of the navigation path

    In the Cash Flow for the transaction, in the Payment View layout, you can see the grouping key in the Grouping column.

  • When the transactions are confirmed (correspondence), they are assigned a reference to the other transactions involved.

    Functions to Create and Edit Netting Transactions

    Function

    Features

    Proposal list for netting transactions.

    You can use this function to select transactions for netting.

    You can carry out the following functions:

    • Create netting transactions.

    • Display and edit netting transactions.

    • Branch to transaction editing to enhance or adjust payment data. To do this, position the cursor on the transaction number and choose Start of the navigation path Goto Next navigation step Transaction Next navigation step Display/Change/.... End of the navigation path

      For more information, refer to the program documentation for this report in the system.

    Create

    Create a netting transaction by directly entering a transaction for netting.

    Change

    Remove transactions from netting or include additional transactions.

    Display

    Display existing netting transactions.

    Undo

    Use this function to undo netting transactions.

Integration

Netting transactions are Object Links used to link financial transactions (reference key: KMP ).

Activities

Call the functions by choosing Start of the navigation path Transaction Manager Next navigation step Money Market/Foreign Exchange/Derivatives/Securities Next navigation step Back Office Next navigation step Netting End of the navigation path