Automatic offset

[karthik]

Hi,

Can anyone explain me wat is meant by automatic offset in payables, and also if we enable any one of the three options i.e. None, Balancing and Actual wat will be the scenario.

[geefin]

To understand the concept let us take an <b>example</b>
Invoice line with Rs.96 and tax line with Rs.4.


<b>Two things have to be noted here. </b>

1. From where the balancing segment account is picked for the offsetting account?

2. How the offsetting line is created -individaul or combined?

Offset line implies credit line.


<b>In Balancing option </b>

1.Payables uses the supplier site's default liability account and overwrites the balancing segment (usually the company code) with the balancing segment from the expense distribution GL Account.

2.For each debit line it creates corresponsing credit line (liabiltiy)

The <b>entry</b> will be like this:


01-101-7640-0000-000 (Invoice amount) 96
01-<b>000</b>-2210-0000-000 96

01-101-7640-0000-000(Tax amount) 4
01-<b>000</b>-2210-0000-000 4


<b>In Account Option</b>

1.Payables uses the expense GL Account from the invoice distribution and overwrites the account segment with the default liability account from the supplier site.

2.For all debit lines, consolidated one credit line(liability) is created.

The<b> entry </b> will be like this:


01-101-7640-0000-000 96
01-101-7640-0000-000 4
01-<b>101</b>-2210-0000-000 100


<b>In None option</b>

1.Payables uses the supplier site's default liability account and overwrites the balancing segment (usually the company code) with the balancing segment from the expense distribution GL Account.

2.But for all debit lines, consolidated one credit line(liability) is created.

The <b>entry</b> will be like this

01-101-7640-0000-000 96
01-101-7640-0000-000 4
01-<b>000</b>-2210-0000-000 100

[karthik]

Thanx Geefin