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.