This topic describes the systematic instruction to create the netting structure so that the appropriate subsidiaries and corporates can be linked to the global netting center and sub centers. The same can be enriched with netting parameters, invoice parameters and scheduling parameters.

Structure Details:

The Structure Details data segment allows to capture the basic details of the netting structure.

1. On Home screen, click Cash Management. Under Cash Management, click Netting.
2. Under Netting, click Maintenance. Under Maintenance, click Create Netting Structure.
   The Create Netting Structure - Structure Details screen displays.

   Figure 2-1 Create Netting Structure - Structure Details

   
   

   
   Description of "Figure 2-1 Create Netting Structure - Structure Details"

   
   
3. Specify the fields on Create Netting Structure - Structure Details screen.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 2-1 Structure Details - Field Description

   Field	Description
   Structure Code	Specify the unique code for the netting structure.
   Structure Description	Specify the description for the netting structure.
   Structure Start Date	Select the date from when the structure should be effective.
   Structure End Date	Select the date till when the structure should be effective.
   Global Netting Center ID	Click the Search icon to view and select the global netting center ID from the list.
   Netting Settlement Days	Specify the number of days post the netting transaction creation date by when the settlement batch should be executed. Netting Settlement Date = Netting Transaction Creation Date + Netting Settlement Days
   Netting Payout Days	Specify the number of days post the settlement batch date by when the payout transactions should get completed. Netting Payout Date = Netting Settlement Batch Date + Netting Payout Days This field is only for MIS purpose.
   Frequency	Select the frequency based on which the netting transaction creation batch should get executed for a specific netting structure. The available options are: Daily Monthly Weekly
   Payin Mode	Select the payin mode for receiving funds from the subsidiary/corporate party. The options are: Account Cr/Dr EFT
   Payout Mode	Select the payout mode for remitting funds to the beneficiary party. The options are: Account Cr/Dr EFT
   Netting Cycle	Specify the unit of duration (weekly, monthly, daily) that can be in present, past, or future based on which the invoices will be picked up for netting.
   Previous Cycle Type	Select All or the Numbers option to include the invoices that are not netted for all the previous netting cycles or for the specific previous netting cycles.

4. Perform any one of the following actions:
   • Click Next button to navigate to the next data segment.
   • Click Save and Close button to save and close the record.
   • Click Cancel button to discard the changes and close the record.

Link Corporate:

The Link Corporate data segment allows to link sub center to the global netting center and further link the multiple corporates/subsidiaries to sub centers or directly to global netting center. User can also link multiple child corporates to parent corporate basis trading relationship between parent and child corporate. Both child corporate and parent corporate are subsidiaries in multilateral netting set up.

5. Click Next button in the Structure Details data segment.
   The Create Netting Structure - Link Corporate data segment displays.

   Figure 2-2 Create Netting Structure - Link Corporate

   
   

   
   Description of "Figure 2-2 Create Netting Structure - Link Corporate"

   
   

Link Sub Center:

The Link Sub Center overlay screen allows to link a sub center to the global netting center.

6. Perform the following actions to link the sub center.
   1. Click Link icon on the applicable node and select Link Sub Center option to link the sub center to the global center.
      The Link Sub Center overlay screen displays.

      Figure 2-3 Link Sub Center

      
      

      
      Description of "Figure 2-3 Link Sub Center"

      
      
   2. Specify the fields on Link Sub Center overlay screen.
      For more information on fields, refer to the field description table.

      Table 2-2 Link Sub Center - Field Description

      Field	Description
      Search Customer	Specify the customer ID/name to filter the subsidiary from the list.
      Customer ID	Displays the unique ID of the customer.
      Customer Name	Displays the name of the customer.

   3. Select the customer checkbox from the list and click Link to link a subsidiary to the global center/sub center/parent corporate/child corporate..

Link Parent Corporate:

The Link Parent Corporate overlay screen allows to link parent corporate to the global center or sub center.

7. Perform the following actions to link parent corporate.
   1. Click Link icon on the global netting center node or sub center node and select Link Parent Corporate option to link the parent corporate to the global netting center or sub center.
      The Link Parent Corporate overlay screen displays.

      Figure 2-4 Link Parent Corporate

      
      

      
      Description of "Figure 2-4 Link Parent Corporate"

      
      
   2. Specify the fields on Link Parent Corporate overlay screen.
      For more information on fields, refer to the field description table.

      Table 2-3 Link Parent Corporate - Field Description

      Field	Description
      Search Customer	Specify the customer ID/name to filter the sub center from the list.
      Customer ID	Displays the unique ID of the customer.
      Customer Name	Displays the name of the customer.

   3. Select the customer check box from the list and click Link to link the parent corporate to the global netting center or sub center.

Link Child Corporate:

The Link Child Corporate overlay screen allows to link child corporate to the parent corporate.

8. Perform the following actions to link child corporate.
   1. Click Link icon on the applicable node and select Link Child Corporate option to link the child corporate to parent corporate.
      The Link Child Corporate overlay screen displays.

      Figure 2-5 Link Child Corporate

      
      

      
      Description of "Figure 2-5 Link Child Corporate"

      
      
   2. Specify the fields on Link Child Corporate overlay screen.
      For more information on fields, refer to the field description table.

      Table 2-4 Link Child Corporate - Field Description

      Field	Description
      Search Customer	Specify the customer ID/name to filter the sub center from the list.
      Customer ID	Displays the unique ID of the customer.
      Customer Name	Displays the name of the customer.
      Role	Select the role type for the child corporate. The available options are: Buyer Supplier Both

   3. Select the customer check box from the list and click Link to link a child corporate to the parent corporate/child corporate..
9. Perform any one of the following actions:
   • Click Back button to navigate to the previous data segment.
   • Click Next button to navigate to the next data segment, once the netting structure is created in the required hierarchy.
   • Click Save and Close button to save and close the record.
   • Click Cancel button to discard the changes and close the record.

Enrich Parameters:

The Enrich Parameters data segment allows to define the netting parameters at sub center and parent corporate level, and the netting/invoicing parameters at the child corporate level.

10. Click Next button in the Link Corporate data segment.
    The Create Netting Structure - Enrich Parameters data segment displays.

    Figure 2-6 Create Netting Structure - Enrich Parameters

    
    

    
    Description of "Figure 2-6 Create Netting Structure - Enrich Parameters"

    
    

Edit Sub Center Parameters:

11. Perform the following actions to edit the Sub Center parameters:
    1. On Sub Center node, click Options icon and select the Edit Parameters option.
       The Edit Sub Center Parameters overlay screen displays.

       Figure 2-7 Edit Sub Center Parameters

       
       

       
       Description of "Figure 2-7 Edit Sub Center Parameters"

       
       
    2. Specify the fields on Edit Sub Center Parameters overlay screen.

       Note:

       The fields marked as Required are mandatory.

       For more information on fields, refer to the field description table.

       Table 2-5 Edit Sub Center Parameters - Field Description

       Field	Description
       Settlement CCY	Select the settlement/netting currency for the netting transaction at subsidiary level. All invoices amounts will be converted to Netting Currency amount and then netted off.
       Payin Mode	Select the payin mode for receiving funds from the subsidiary/corporate party/global netting center. The available options are: Account Cr/Dr EFT
       Payout Mode	Select the payout mode for remitting funds to the beneficiary party. The available options are: Account Cr/Dr EFT

    3. Click Save to save the details.

Edit Parent Corporate Parameters

12. Perform the following actions to edit the Parent Corporate parameters:
    1. On Parent Corporate node, click Options icon and select the Edit Parameters option.
       The Edit Parent Corporate Parameters overlay screen displays.

       Figure 2-8 Edit Parent Corporate Parameters

       
       

       
       Description of "Figure 2-8 Edit Parent Corporate Parameters"

       
       
    2. Specify the fields on Edit Parent Corporate Parameters overlay screen.

       Note:

       The fields marked as Required are mandatory.

       For more information on fields, refer to the field description table.

       Table 2-6 Edit Parent Corporate Parameters - Field Description

       Field	Description
       Include Past Due Receivables	Select the toggle to include the overdue receivables for netting.
       No of Days	Specify the maximum aging days of overdue invoices to be considered for netting.
       Include Non Accepted Receivables	Select the toggle to specify whether non accepted invoices should be considered for netting.
       Auto Approval	Select the toggle to approve the specify whether netting transaction should get auto approved/auto accepted in case corporate user does not manually accept or reject netting transaction
       Settlement Currency	Select the settlement/netting currency for the netting transaction at subsidiary level. All invoices amounts will be converted to Netting Currency amount and then netted off.
       Payin Mode	Select the payin mode for receiving funds from the subsidiary/global netting center/sub center/child corporate party. The available Options are Account Cr/Dr EFT
       PayoutMode	Select the payout mode for remitting funds to the beneficiary party. The available options are: Account Cr/Dr EFT
       NettingParticipation	Click on the toggle to specify whether the parent corporate should participate in next netting cycle.

    3. Click Save to save the details.

Edit Child Corporate Parameters

13. Perform the following actions to edit the Buyer details of Child Corporate Parameters:
    1. On Buyer Of Child Corporate Parameter nodes, click Options icon and select the Edit Parameters option.
       The Edit Details - Buyer overlay screen displays.

       Figure 2-9 Edit Details - Buyer

       
       

       
       Description of "Figure 2-9 Edit Details - Buyer"

       
       
    2. Specify the fields on Edit Details - Buyer overlay screen.

       Note:

       The fields marked as Required are mandatory.

       For more information on fields, refer to the field description table.

       Table 2-7 Edit Details - Buyer - Field Description

       Field	Description
       Include Past Due Receivables	Select the toggle to include the overdue receivables for netting.
       No of Days	Specify the maximum aging days of overdue invoices to be considered for netting.
       Include Non Accepted Receivables	Select the toggle to specify whether non accepted invoices should be considered for netting.
       Payables Invoicing Parameters	Select the parameters required for processing/managing payables in the following fields.
       Auto-Debit Applicable (Parent)	Select the toggle whether the automatic debit facility is applicable for payables at the relationship level.
       Holiday Treatment	Select the value to specify how to treat auto-debit transactions falling on holidays. The options are: Previous Business Date Next Business Date
       Auto Acceptance Applicable	Select the toggle whether the auto acceptance should be enabled for the payables.
       No of Days	Specify the number of day(s) post which the auto-acceptance is triggered for the payables, if the invoices are not manually accepted. Note: This field displays only if the Auto Acceptance Applicable toggle is enabled.
       Allow Overdue Receivables	Select the toggle to allow the creation of overdue invoices and debit notes for the relationship.
       Maximum Days Overdue	Specify the maximum number of days post the payment due date (if maintained), until when the creation of the payable is allowed. Note: This field displays only if the Allow Overdue Receivables toggle is enabled.
       Validate Linked PO	Select the toggle to validate the purchase orders linked with invoice during creation or upload.

    3. Click Save to save the details.
14. Perform the following actions to edit the Supplier details of Child Corporate Parameters:
    1. On the Supplier Of Child Corporate Parameter nodes, click Options icon and select the Edit Parameters option.
       The Edit Details - Supplier overlay screen displays.

       Figure 2-10 Edit Details - Supplier

       
       

       
       Description of "Figure 2-10 Edit Details - Supplier"

       
       
    2. Specify the fields on Edit Details - Supplier overlay screen.

       Note:

       The fields marked as Required are mandatory.

       For more information on fields, refer to the field description table.

       Table 2-8 Edit Details - Supplier - Field Description

       Field	Description
       Include Past Due Receivables	Select the toggle to include the overdue receivables for netting.
       No of Days	Specify the maximum aging days of overdue invoices to be considered for netting.
       Include Non Accepted Receivables	Select the toggle to specify whether non accepted invoices should be considered for netting.
       Receivables Invoicing Parameters	Select the parameters required for Receivables in the following fields.
       Auto-Debit Applicable (Parent)	Select the toggle whether the automatic debit facility is applicable for payables at the relationship level.
       Holiday Treatment	Select the value to specify how to treat auto-debit transactions falling on holidays. The options are: Previous Business Date Next Business Date
       Auto Acceptance Applicable	Select the toggle whether the auto acceptance should be enabled for the payables.
       No of Days	Specify the number of day(s) post which the auto-acceptance is triggered for the payables, if the invoices are not manually accepted. Note: This field displays only if the Auto Acceptance Applicable toggle is enabled.
       Allow Overdue Receivables	Select the toggle to allow the creation of overdue invoices and debit notes for the relationship.
       Maximum Days Overdue	Specify the maximum number of days post the payment due date (if maintained), until when the creation of the payable is allowed. Note: This field displays only if the Allow Overdue Receivables toggle is enabled.
       Validate Linked PO	Select the toggle to validate the purchase orders linked with invoice during creation or upload.

    3. Click Save to save the details.
15. Perform any one of the following actions:
    • Click Back button to navigate to the previous data segment.
    • Click Next button to navigate to the next data segment, once the netting/invoicing parameters is configured in the respective nodes.
    • Click Save and Close button to save and close the record.
    • Click Cancel button to discard the changes and close the record.

Structure Summary:

The Structure Summary data segment allows to view all the configured parameters for the netting structure.

16. Click Next button in the Enrich Parameters data segment.
    The Create Netting Structure - Structure Summary data segment displays.

    Figure 2-11 Create Netting Structure - Structure Summary

    
    

    
    Description of "Figure 2-11 Create Netting Structure - Structure Summary"

    
    
17. Perform any one of the following actions:
    • Click Back button to navigate to the previous data segment.
    • Click Save and Close button to save the record and send it for authorization.
    • Click Cancel button to discard the changes and close the record.