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What is Purchase Offset Account and what is use of it ???

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What is Purchase Offset Account and what is use of it ???

former_member337117
Contributor
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Babu,

Pls use tag "FINANCE" or related tags, you will get better response with more clarity. It is FI related with integration with MM.

Regards,

Vignesh Bhatt

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Answers (1)

brahms86
Active Contributor
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Some countries have the legal requirement to route all purchasing activities through a "purchase ledger", irrespective of the specific account determination. That would be the "purchase account". It gives you an easy overview from a G/L point of view on the total purchasing activities of a company. The offsetting account is the "purchase account offset account". An example for country where it is mandatory would be Belgium, I think also France.

It is controlled by a setting in MM -> Valuation and Account Assignment -> Account determination -> Account Determination without wizard -> Puchase Account Management -> Activate Purchase Account in Company Code (S/4 system)

KR,

Steffen