Purpose use of Offset account SAP Business One

[nikunjmehta2290]

Dear all,

What is the purpose of Offset account to use into SAP B1? 

For example, Offset account which was used in Issue for production which was clear during Receipt from Production?

Offset account use, SAP Business One, SAP B1

Regards,

Nikunj 

[Yadharthavel · Accepted solution]

Hello @nikunjmehta2290 
In SAP, offset accounts are used to: 

Match debits and credits: Ensure that each debit posting is matched to a credit posting, and vice versa, to comply with the law  

Clear items: Clear debit and credit items, assets and liabilities, and owner's equity  

Prevent profit and loss inflation: Collect amounts from accounts to be capitalized to prevent the profit and loss statement from inflating 

Offsetting is the process of removing or limiting liabilities by offsetting an entry with an equal but opposite entry. For example, a loss in one division can be offset by an equal profit in another division.