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Administrator Guide
Last Updated: 2025-09-19
Reference: Netting Rules

Reference: Netting Rules

You can configure netting rules to define which customer invoices and supplier invoices can net against each other. For single currency netting, you can maintain rules between customers and suppliers for 1 or more companies or a company hierarchy. Workday identifies the invoices to net using the criteria in the netting rule and invoice eligibility rule.
For direct intercompany netting, see Set Up Direct Intercompany Netting Rules.
Option
Description
Rule Name
Enter a unique name for each netting rule.
Company
Any company or company within the hierarchy that you specify on the netting rule can initiate a netting transaction using that rule.
Customer
You can't select companies that operate as customers or suppliers on netting rules.
You can select customers and sponsors.
Supplier
You can't select supplier invoices from suppliers with 1099 MISC reporting.
Balancing Fund
This field displays for tenants with worktag balancing enabled. Select the worktag used to calculate interworktag balancing entries when netting customer invoices and supplier invoices that have different balancing worktags.
Optional Balancing Worktags
This field displays for tenants with optional worktag balancing enabled. Select the
Optional Balancing Worktag
to generate due to and due from entries to balance the netting transaction.
In Use
Once a netting rule is
In Use
, you can mark it inactive, but can't delete it.
Inactive
Select to block the netting rule for future netting transaction.