I have questions on Netting:
(1) As far as I understand, all receipts with respect to PO and all delivery with respect to SO are netted by the Netting document. For financial based netting, since Netting document is doing the netting, do we still need to create billing (VF01) and vendor invoice (MIRO)? If yes, why as the Netting doc is netting it based on the GR and GI ? OR the netting is actually based on the billing and invoice created?
(2) What is the usage of Netting cycle? Why need it?
(3) Netting consists of two areas: (please elaborate further)
ℹ️ Posting payables or receivables
--> in this case, the payables and receivables are not offset, why need to create Netting doc?
(ii) Offsetting payables and receivables
--> in this case, payables and receivables are offset with the Netting document.
Please help. Thank you.