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Administrator Guide
Last Updated: 2025-09-19
Set Up Direct Intercompany Netting Rules

Set Up Direct Intercompany Netting Rules

Security:
Set Up: Netting Rules
 domain in the Common Financial Management functional area.
To set up direct intercompany netting transactions, you can define rules that establish the relationships between initiating and netting companies. You can:
  • Configure netting between 2 or more companies.
  • Select a reference currency.
  • Provide additional eligibility criteria for netting transactions.
  1. Access the
    Maintain Netting Rules
     task.
  2. On the
    Direct Intercompany Netting Rules
     tab, add a rule and complete the task:
    Option Description
    Initiating Companies
    Netting Companies
    Select 1 or more initiating and netting companies for each rule. When you select multiple companies from both prompts, Workday combines them into a single netting rule.
    Workday can process up to 200 combinations in a combined netting rule. To prevent the duplicate and inverse combinations, define individual netting rules instead of the combined netting rules.
    You can't create netting rules for a company hierarchy.
    Reference Currency
    Select the currency used for comparing netting invoices.
    Invoice Eligibility Rule
    Select additional criteria to filter the invoices for this netting transaction. Example: Invoices include adjustments.
    Optional Balancing Worktags
    Define balancing worktags or optional balancing worktags when worktag balancing or optional worktag balancing is enabled on your tenant.
    Security:
    Setup: Netting Rules
     domain in the Common Financial Management functional area.
  3. Click
    OK
    .
You can initiate netting transactions between the initiating and netting companies in the rule.