What is balance netting in SAP FS-AM-IM-GL - General Ledger Transfer?

SAP Term: balance netting

• Component: FS-AM-IM-GL

• Component Name: General Ledger Transfer

• Description: The formation of the total balance of a number of accounts of the same account holder and statement on the balance sheet side assets or liabilities that corresponds to the total balance debit or credit of the group of accounts. In Germany, for example, balance netting is a legal requirement. There is a law requiring that under certain circumstances the receivables from and payables to the same customer must be offset against each other. In the context of general ledger transfer, balance netting is realized as follows. First, before transfer, all the flows from the group of accounts of the same account holder are added. The +/- sign of the total amount governs on which side of the balance sheet assets or liabilities the individual totals of the accounts involved are posted. Depending on the balance, the individual totals are posted as debit or credit so that the balance on the general ledger matches the total balance of all individual accounts.

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• Key Concepts: 
  Balance netting is a process in SAP Financials and Accounting Management (FS-AM-IM-GL) that allows for the transfer of balances between two general ledger accounts. This process is used to reduce the number of open items in the system, as well as to simplify the reconciliation of accounts. 
  
  How to use it: 
  Balance netting can be used to transfer balances between two general ledger accounts. This process is initiated by creating a balance netting document, which contains the details of the accounts to be balanced. Once the document is created, the system will automatically calculate the net balance and transfer it to the target account. 
  
  Tips & Tricks: 
  When using balance netting, it is important to ensure that all of the details are correct before initiating the process. This includes verifying that all of the accounts involved are valid and that the amounts being transferred are correct. Additionally, it is important to ensure that all of the necessary documents are attached to the balance netting document before initiating the process. 
  
  Related Information: 
  For more information on balance netting in SAP FS-AM-IM-GL, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are several online resources available that provide detailed instructions on how to use this feature in SAP Financials and Accounting Management.