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Administrator Guide
Last Updated: 2025-09-19
Steps: Set Up Netting

Steps: Set Up Netting

  • Enable generation of unique IDs for netting transactions:
    • At the tenant level with the
      Edit Tenant Setup - Financials
       task.
    • At the company level with the
      Edit Company ID Definitions
       task.
  • Configure the
    Netting Transaction Event
     business process and security policy in the Customer Accounts and Supplier Accounts functional areas.
  • Review setup considerations for invoice netting.
You can configure invoice netting to calculate a single net balance payable or receivable for third-party companies that are both a customer and a supplier. This process eliminates the workaround of calculating the differences between supplier invoice and customer invoice amounts, simplifies settlement, reduces operation costs, and improves collections risk.
To set up invoice netting, you need to:
  • Configure netting rules to establish relationships between customers, sponsors, and suppliers for a company or company hierarchy.
  • Define invoice eligibility rules to identify which customer invoices can net against which supplier invoices.
When you create a netting transaction, Workday:
  • Automatically calculates Value Added Tax (VAT) on a payment when applicable.
  • Excludes on hold or in dispute invoices.
  • Doesn't net invoices across different companies or direct intercompany invoices.
  1. Access the
    Create Invoice Eligibility Rule for Netting Transaction
     task.
    • Specify a value for
      # of Days Invoices are Open before Netting
       to determine the period from when to retrieve the open invoices. When you schedule a netting transaction, calculate the days open from the scheduled date.
    • When you have an uneven amount of customer and supplier invoices, Workday uses the
      Invoice Netting Priority
       to determine which invoices will net first.
    Security:
    Setup: Netting Rules
     domain in the Common Financial Management functional area.
  2. Access the
    Maintain Netting Rules
     task.
    Define which customers or sponsors can net against which suppliers for a given company and select an invoice eligibility rule. Select a company hierarchy to be able to net across all companies in that hierarchy.
    Once a netting rule is
    In Use
    , you can deactivate the rule but can't delete it.
    On the
    Direct Intercompany Netting Rules
     tab, define which direct intercompany customer invoices can net against which direct intercompany supplier invoices between initiating and netting companies. You can:
    • Maintain rules between 1 or more initiating and netting companies, but not for a company hierarchy.
    • Select a balancing worktag or optional balancing worktag on the netting rule, when worktag balancing or optional worktag balancing is enabled for your tenant.
    Security:
    Setup: Netting Rules
     domain in the Common Financial Management functional area.
  4. (Optional) Access the
    Schedule Netting Transaction
     task.
    Select a schedule based on your netting recurrence requirements. Workday populates the
    Transaction Date
     and the
    Invoice Date on or Before
     fields on the netting transaction based on the option you select:
    • Daily Recurrence
    • Weekly Recurrence
    • Monthly Recurrence
    Security:
    Process: Netting Transaction
     domain in the Customer Accounts and Supplier Accounts functional areas.
  5. Access the
    Create Netting Statement Print Layout
     task.
    Security:
    Setup: Netting Rules
     domain in the Common Financial Management functional area.
  6. Access the
    Print Netting Statement
     task from the related actions menu of a netting transaction to print the netting statement.
    • You can print only 1
      Final
       statement for each netting transaction. The print run type becomes final after you approve the netting transaction.
    Security:
    Process: Netting Transaction
     and
    Process: Netting Transaction – Reporting
     domains in the Customer Accounts and Supplier Accounts functional area.
  7. To attach netting statements to your supplier emails, add the
    Netting Statements
     report field to the
    Attachment(s)
     section of the
    Remittance Release Event
     business process.