Configuring the consolidation of debts

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

  1. In Business Modeling, select Modules > Consolidation > Processes and click the Debts tab.
  2. Perform one of these actions:
    Option Description
    Click the + icon Displays the Add Elimination dialog box.
    Select an elimination and click the Edit icon Displays the Edit Elimination dialog box
  3. Specify this information:
    Id
    Specify an ID for the elimination.
    Name
    Specify a name for the elimination.
    Optionally, click the Translate Name icon and specify translations for the name in one or more languages.
    Threshold
    Specify the threshold at which the elimination applies.
  4. Click the lookup icons to select values for these items:
    • Currency Translation Differences Account: An account to present the currency translation differences.
    • Detail for Currency Translation Differences: A detail for the account that presents the currency translation differences.
    • Other Differences Account: An account to present other differences. For example, if receivables and payables do not match, the difference is recorded on this account.
    • Detail for Other Differences: A detail for the account that presents other differences.
    • Account Set: We recommend that you select receivable accounts.
    • Contra-Account Set: We recommend that you select payable accounts.
    For the Account Set and Contra-Account Set, you can select multiple values. The number of accounts in one set can be different than in the other set. For example, 1:n, n:1, or n:n.
    Note: Consolidation of debts differentiates between Other Differences and Currency Translation Differences only for the D process, which does not use segmentation. For HD and HDE processes, the difference in total is posted only to the Other Differences account.
  5. To save an added elimination or edited elimination, click + Add or Save respectively.
    You can save an elimination when you have specified its ID, name, and threshold. An elimination is marked as configured when all required group accounts and schedule details are specified.
  6. To enable required debts elimination processes, in the Enabled column of the list of processes, select the check box of the processes to enable.
  7. Select additional properties as required.
    These additional properties and values are available:
    • Number of journals per company-intercompany relation
      • One: Indicates that one journal is created for both entities together.
      • Two: Indicates that a separate journal is created for each entity.
    • Consolidation Basis
      • Adjusted entity data
      • Adjusted entity data including carry forward: Typically used in the consolidation of debts.
      • Consolidated Balance Sheet
  8. Click Save.
  9. To enable the consolidation process configuration to take effect, publish the model.
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