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Account determination

Former Member
0 Kudos

Dear Xperts,

Wolud you please tell me what does it mean by offsetting entry with example. and,

What is Account modifier and what is the use of it with example??

Thank you

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi,

while we DO GRN for a stock material for A PO,then following accounting entries will happen

Debit Stock account

credit GR/IR Account

when we do MIRO then following posting will happen

Debit GR/IR account and

credit vendor account

this is called offsetting entry

account modifier is a key comes to picture inyour automatic account determination

for three type of postings which cannot detrmine any valid value string directly

1) Price diffrence

2)consumption posting

3) consignment and pipe line material

hence account modifier are used to find the exact accounts.

Regards

Former Member
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hii

Good reply from u

Can u tel me wht ia valuetion string , how it 'll link all accounting with transaction

Thanks

SAP-MM

Former Member
0 Kudos

Hi SAP-MM,

Whenever a transaction is done, value string is triggered based upon the nature of transaction. Account determination is configured based upon the Transaction keys which are linked to the value string for that specific transaction.

Regards,

Phani

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi,

While performing transactions which involve Accounting entries, system will post to the relevant accounts based upon the Automatic Account Determination in the system.

An offsetting entry is any entry which will be posted based upon the nature of transaction.

For example: a) If you make initial stock entry, system will debit to Stock Account (BSX) and debit to Offsetting account for Inventory posting (GBB) with account modifier as BSA

b) If you Issue goods to a cost center, system will Credit to Stock account (BSX) and debit to Offsetting account for Inventory posting (GBB) with account modifier as VBR.

In the above examples, it is quite clear that an offsetting account is an account which is used to offset the postings to various accounts.

Account modifier is a finer subdivision of the Transaction event key. They are used to differentiate the natuer of postings. For example, in the above two examples, system posted to Account Modifier BSA & VBR respectively under the same Transaction event key of GBB.

Regards,

Phani Varma