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Last question on this issue. Kenduri (BPP50) shows them all making payments to each other on the net amount where in practice I assumed you paid the netting centre the net or got paid by the netting centre the net
Certainly it is the ‘centre’ (the treasury department) that will organise the netting. However it would be up to them to decide which was more efficient – each company netting, or all the netting being done in the centre.
The way part (b) of the questionwas worded (asking for a table) does mean that here you were to look at it the way the answer has done.
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