Error: inter-company balances are not netted off in group accounts in Accounts Production Advanced

Scenario

Solution

Open the group company.
Select
Financial Period
,
Configuration
, then
Accounts
.
Select
New
.
Create a new code
687.03
and name it:
Consolidation credit
.
Select
OK.
Create a new code
687.04
and name it:
Consolidation debit
.
Select
OK
, then
OK
again.
Select the
Import / Account Assignment
tab.
Select the
Account Assignment (Entity) Maintenance
link.
In the Entity Specific Account Assignment window, select
Group entity
from the
Entity
dropdown list.
If the category codes are not shown, select
Display category code
from the
Display
dropdown list.
Select code
687.03
  and drag it to within category
CA 2 3 – Receivables from related parties
.
Select code
687.04
and drag it to within category
CL 1 3 1 – Amounts owed to group undertakings and undertakings in which the company has a participating interest
.
Select
OK.
Select the
Account Assignment (Master) Maintenance
link.
Repeat steps 12 to 14.
Select the
Journals
tab.
Select
New
.
In the new journal, use the
Entity
ellipsis button to select the group entity, then select
OK.
Post the inter-company journal debit to code
687.04
and the credit to code
687.03
to net off the amounts due to related parties.
Select
Close.