offsetting account

Posts: 8 Points: 11 Reputation: 3 Join date: 2010-08-29

Hi,
I also want to know about this.
The explanation from sharon was something textbook type...I hope something better.

Posts: 6 Points: 6 Reputation: 0 Join date: 2010-07-20

One whicht reduces the gross amount of another account to derive a net balance. Accumulated depreciation, which is a contra account to fixed assets to obtain book value can be said as an offset account.

SAP Consulting

Posts: 2 Points: 2 Reputation: 0 Join date: 2010-02-09

Hi,

An accounting transaction is complete when there is atleast one debit and corresponding credit entries to that transaction. This example will explain the Offsetting Account:
Purchased goods Accounting Entry:
Material Account Dr
GR/IR Account Cr

In this case, Material Account is the Offsetting Account for GR/IR Account and GR/IR Account is the offsetting Account for Material Account.
Please let me know if you need further clarification.

Thanks
Ekhlaque

Posts: 5 Points: 0 Reputation: 0 Join date: 2009-02-04

sweetie wrote:

Hy, cand someone explain to me what is the offsetting account? thank you.

Hi,

Are you referring to intercompany accounts? If yes, then I can give you an answer. Smile

Best regards,
SAPexpert

Posts: 3 Points: 3 Reputation: 0 Join date: 2009-01-22

Hy, cand someone explain to me what is the offsetting account? thank you.