What is 'offsetting' in SAP FIN-FSCM-TRM - Treasury and Risk Management?

offsetting - Overview

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: Closing an FX transaction by clearing it with another offsetting FX transaction.

offsetting - Details

• 
  Key Concepts: 
  Offsetting is a process in SAP Treasury and Risk Management (FIN-FSCM-TRM) that allows for the simultaneous cancellation of two or more open items. This process is used to reduce the number of open items in an account, and to reduce the amount of manual work required to reconcile accounts. 
  
  How to use it: 
  Offsetting can be used to cancel out open items that have the same currency, company code, and account. The offsetting process can be initiated manually or automatically. To initiate offsetting manually, the user must select the open items they wish to offset and then click the “Offset” button. To initiate offsetting automatically, the user must set up an offsetting rule in the system. 
  
  Tips & Tricks: 
  When setting up an offsetting rule, it is important to ensure that all of the criteria are met in order for the offsetting process to be successful. Additionally, it is important to note that offsetting can only be used for open items with the same currency, company code, and account. 
  
  Related Information: 
  For more information on offsetting in SAP Treasury and Risk Management (FIN-FSCM-TRM), please refer to SAP Help documentation or contact your local SAP support team.