Hello Team,
With respect to Netting process where vendor is customer & customer is also vendor, here i have configured all which are required for netting. Like..."Separate payment for Each Ref." is unticked under paying company code & "Single payment for marked Item" is unticked under Payment method in company code. Then maintain customer / vendor number in vendor / customer master record & also ticked on "clearing with Vendor" & "clearing with customer" in both customer/vendor master record.
But the issue is that during F110 when we generate the payment proposal that time 2 separate line generated by system & here Debit Balance has not been considered during payment.

Here we can able to see that separate lines generated i.e., Red & Green. But in actual generally only 1 single line item generate for customer & vendor whether its in error or not.
Furthermore, in Red line if we double clicked & use the reallocation for debit balance then it's adding in Green Line Items which we don't want to do it manually.
SO COULD YOU PLEAES HELP & GUIDE ME WHAT I MISSED HERE THATS WHY HAVING THE DIFFERENT BEHAVIOUR.
THANKS IN ADVANCE FOR YOUR VALUABLE THOUGHTS.
Regards,
Varun