Could not find "Payment netting" activity type in receivables activities.

We are trying to receipt on receipt application and we are encountering an error

You must assign a general ledger account to the payment netting activity. (AR-856100)

Our investigation shows that Payment netting type is not available in manage receivables activities instead activity with Payment is available.

We created receivable activity by taking "payment" as activity type and tried receipt on receipt application, but the issue is still the same.