This feature is used to create offset credit side liability a/c's in payables in such a way that all balancing segment of debit should be equal to credit. There are three type of automatic offset Method
1) Balancing Account.
2) Natural Account.
3) None
Balancing: If you are select balancing as your automatic offset method, To create offset credit lines, Payables picks the balancing segment part accounting from Invoice Distribution lines a/c and remaining code combination will be picked up from Supplier Liability a/c.
Natural Account: If you are select natural as your automatic offset method then to create offset credit lines, The system will pick natural a/c part from Supplier Liability a/c and remaining code combination will be picked from Invoice Distribution a/c.
None:If you are select none as your automatic offset method. It means automatic offset method concept is not applicable.
Illustration:
Invoice “123” is created on Supplier “ABC” for an amount of Rs.10000/-. The invoice distribution accounts given as 01-001-0001-0001-000 The liability account defined at the supplier site is “01-002-0002-0002-000”.
The current accounting entry is
Account Combination Debit Credit
01-001-0001-0001-000 10000
01-002-0002-0002-000 10000
For Balancing automatic offset method the desired accounting entry will be as follows
Account Combination Debit Credit
01-001-0001-0001-000 10000
01-002-0002-0002-000 10000
For Natural automatic offset method the desired accounting entry will be as follows
Account Combination Debit Credit
01-001-0001-0001-000 10000
01-001-0002-0001-000 10000
1) Balancing Account.
2) Natural Account.
3) None
Balancing: If you are select balancing as your automatic offset method, To create offset credit lines, Payables picks the balancing segment part accounting from Invoice Distribution lines a/c and remaining code combination will be picked up from Supplier Liability a/c.
Natural Account: If you are select natural as your automatic offset method then to create offset credit lines, The system will pick natural a/c part from Supplier Liability a/c and remaining code combination will be picked from Invoice Distribution a/c.
None:If you are select none as your automatic offset method. It means automatic offset method concept is not applicable.
Illustration:
Invoice “123” is created on Supplier “ABC” for an amount of Rs.10000/-. The invoice distribution accounts given as 01-001-0001-0001-000 The liability account defined at the supplier site is “01-002-0002-0002-000”.
The current accounting entry is
Account Combination Debit Credit
01-001-0001-0001-000 10000
01-002-0002-0002-000 10000
For Balancing automatic offset method the desired accounting entry will be as follows
Account Combination Debit Credit
01-001-0001-0001-000 10000
01-002-0002-0002-000 10000
For Natural automatic offset method the desired accounting entry will be as follows
Account Combination Debit Credit
01-001-0001-0001-000 10000
01-001-0002-0001-000 10000
