Bilateral Netting
Categories: Metrics, Accounting
No, this has nothing to do with fishnets (either kind). The “net” in “bilateral netting” is the math-kind-of-net, as in “net profit.” “Bilateral” means “affecting two sides.”
Putting it all together: bilateral netting is when one party says to the other, “hey, this back and forth of services and cash is creating a lot of unnecessary accounting time and fees, yo” and the other party says, “you’re totally right, bro. Let’s get some bilateral netting up in here by turning all of our little agreements and little payments into one big agreement and one big payment.” "Word."
