Bilateral netting: offset reciprocal orders and pay the difference

Step by step

1. 1

   Find reciprocal obligations

   Open Workspace → Netting. The current proposal groups payment-stage orders with Netting terms between the same two companies. Supplier-chain orders are excluded. Before proposing, independently check that every included order uses the same currency.

2. 2

   Review the proposal

   Check all included Order IDs and outstanding balances on both sides. The proposal can aggregate multiple reciprocal orders. The offset is limited by the smaller total; it does not erase the larger balance.

3. 3

   Obtain counterparty acceptance

   Submit the proposal and wait for the other party to confirm. Recheck balances, currencies and any payment in progress before confirmation; the current flow does not guarantee all of these are automatically revalidated. A pending proposal is not a completed offset.

4. 4

   Read back and pay residuals

   After confirmation, verify the updated order balances. Pay any remaining balance through the order’s normal payment action. Keep the offset and payment records for accounting reconciliation.

Important checks

• Illustrative example: A owes B 10,000 and B owes A 7,000 in the same currency. A 7,000 bilateral offset leaves A owing B 3,000.
• The current proposal uses a reference currency without guaranteeing every grouped order matches it. Do not confirm a mixed-currency proposal; ask staff to review it.
• The live module does not promise automatic multi-party ring netting, foreign-exchange conversion or a completed bank payment.