Netting (Versino Financial Suite)

Netting In the Versino Financial Suite, it is an integrated function within SAP Business One: it compares open receivables and liabilities with a business partner who is also a customer and supplier, and automatically generates the necessary bookings. In fact, only the difference amount is subsequently transferred or received.

Background

Many companies have business partners who are both debtors and creditors at the same time. For example, a tradesman buys from a building materials dealer and sells services to the same supplier. If there are EUR 12,000 in debit and EUR 9,000 in credit on the debtors’ side and EUR 3,000 on the creditors’ side, only the difference of EUR 3,000 should be recorded. Without a specialized netting function, accounting often in practice books two manual payments and a journal entry for the difference. These three entries are hardly traceable later on. Moreover, the list of open items (OP list) in the tax advisor shows positions that were long ago settled.

Process in the Versino Financial Suite

The function is accessible via the Versino Financial Suite menu > Netting Overview or > Netting Reconciliation. First, the Netting Overview shows all business partners with simultaneously open debit and credit balances. Filters by due date and balance combination as well as an optional discount calculation limit the cases. Then a double click opens the detailed reconciliation with the master data and the open documents of both parties. The user can change the payment amounts and also reconcile partial amounts. After that, the system calculates the settlement amounts. For large amounts, there is a mass reconciliation across all reconcilable business partners with a summary report. Finally, the system automatically posts one payment to offset the selected debit and credit documents, each against a configured netting account. A journal entry reconciles the netting accounts and posts rounding differences to a standard netting account.

Accounting logic

The system does not offset claims with liabilities. It balances both sides, each on their own settlement account. The netting accounts serve as pass-through positions. At the end, the debtor account and creditor account are at zero, and the actual flow differential is documented. Each entry has a configurable netting reference text and is linked to the original documents. The netting history shows all transactions chronologically with date, journal entry ID, amount, and difference. Individual transactions can be canceled; the entry trail is preserved.

discount

The system reads the discount conditions from the payment terms. It calculates the discount amounts based on the due dates. It then separately credits the discount amounts to the discount accounts from the DATEV configuration.

Link to the post

According to the contribution, Netting does not dispute the prohibition on reconciliation: The prohibition concerns the balance sheet statement, not the operational payment reconciliation. According to the contribution, both parties must agree and the reconciliation must be properly booked. The contribution sees the greatest benefit in companies with several hundred business partners and regular double-entry transactions. If double-entry transactions are the exception and the company operates without a DATEV tax office, the setup costs for Netting accounts, reference texts, and reconciliation accounts can be greater than the immediate benefit.

Demarcation

SAP Business One includes the field „Interconnected Supplier/Customer“ and internal reconciliation in the standard. This allows open invoices from a partner to be reconciled with each other. The Versino Financial Suite provides a counterpart as a separate function with configurable accounts, logging, and cancellation options. Related entries: Versino Financial Suite (VFS), Internal Reconciliation (SAP Business One), Open Items (OPOS), Balance Confirmation, Discount, Equalization, and Balance Prohibition.