Netting in IS oil Module

[Former Member]

Hi,

I need to understand what is Financial Based netting and Movement based netting.

and also the pros and cons of each.

Regards

Raghavendra

[Former Member · Accepted solution]

Hi raghvendra,

Netting is the balancing of the transaction between two trading partner. In movement netting two trading partner take out all the transaction happen during the month and as per their exchange aggrement they check it. if the difference is ther it is settled by product is called movement netting.

In financial netting the difference as per exchange aggrement is settled by cash i.e. either AP or AR.

Regards

Pravin

[Former Member]

Hi

Finacial base neting :- to extraxt the transaction happen between exchnage partner and debit credit the diffrance amount

Inventory netting :-to extraxt the transaction happen between exchnage partner and debit credit the diffrance amount or carry forward the inventory balances instead of adjustment in termas of money.

[Former Member]

Hi Raghavendra,

Netting usually is between two parties for the exchange of goods when ever there is sudden requirement at customer end based on the certain exchage agreement, free to be paid for the receipts, delivery, and for final payment.

For more details find the link below.

http://help.sap.com/saphelp_oilgas2005/helpdata/en/13/9c063628742a09e10000009b38f839/frameset.htm.

Best Regards,

Satish