offsetting

[Former Member]

hi, i want to clarify the term used.

if in the same clearing account, the cr side can offset the dr side.

may i know if different gl account, for double entries, let say i cr abc account, can i say i offset the dr side of xyz account?

if the word offset can be used in the same account and also different account? if cannot apply to different account then what term should i say?

thanks

[former_member200240]

If a debit entry is offset with Credit entry, then it is called Clearing

Whereas offsetting is always referencing another GL Account. For eg, what is the offsetting entry for this Debit account?. You will reference to another GL Account

Hope your confusion is solved.

S Jayaram