What is offsetting account in SAP FI - Financial Accounting?

SAP Term: offsetting account

• Component: FI

• Component Name: Financial Accounting

• Description: A G/L account used to offset amounts that "self-balance". The document lines of the account are grouped according to specific criteria. If the balance is zero, these lines are regarded as self-balancing and removed from the posting process.

Smart SAP Assistant

• Key Concepts: 
  An offsetting account is a type of account used in SAP Financial Accounting (FI) to balance out the debit and credit entries of a transaction. It is used to ensure that the total of all debits and credits in a transaction are equal. This helps to maintain the accuracy of the financial records. 
  
  How to use it: 
  When creating a transaction in SAP FI, an offsetting account must be specified. This account will be used to balance out the debit and credit entries of the transaction. The offsetting account should be chosen based on the type of transaction being created. For example, if a customer payment is being made, then an offsetting account such as Accounts Receivable should be used. 
  
  Tips & Tricks: 
  When selecting an offsetting account, it is important to ensure that the total of all debits and credits in the transaction are equal. This can be done by double-checking the entries before submitting the transaction. 
  
  Related Information: 
  For more information on offsetting accounts in SAP FI, please refer to the SAP Help Portal or contact your local SAP support team.