Consolidating debts

The consolidation process is assigned accounts and contra accounts. Each process configuration determines which accounts are reconciled against each other. The type of receivables is usually reconciled against the same type of payables. For example, trade receivables against trade payables.

We recommend that you assign receivables to the Accounts section and payables to the Contra accounts section. You can assign any number of accounts to each section. The number of accounts in one section can be different than the number of accounts in the other section. For example, 1:n, n:1, or n:n.

Consolidation of debts eliminates the accounts that are set for receivables against the contra accounts that are set for payables.

Select Financial Consolidation > Data Process Group > Configure Processes and click the Cons. Debts tab.
Specify this information:
Number of bookings

Select the number of bookings. You can select either 1 or 2. 1 indicates that one journal is created for both entities together. 2 indicates that a separate journal is created for each entity.

Consolidation basis
Select one of these options:
- Adjusted Entity Data
- Adjusted Entity Data inc.Carry Forward: Typically used in the consolidation of debts.
- Consolidated Balance Sheet
For D1 and D2 processes, specify this information:

Accounts

Select the receivables account.

Contra Accounts

Select the payables contra account.

Currency Translation Differences Account

Select the account to present the currency translation differences.

Currency Translation Differences Detail

Select the detail for the account that presents the currency translation differences.

Other Differences Account

Select the account to present other differences. For example, if receivables and payables do not match, the difference is recorded on this account.

Other Differences Detail

Select the detail for the account that presents other differences.

Note: D1 process is the elimination of long term intragroup loans receivables/payables. D2 process is the elimination of short term intragroup loans receivables/payables.
To enable the consolidation process configuration to take effect, publish the model in Business Modeling.