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Is All GL accounts are Offsetting Accounts or Bank Related GL are Offsetting Accounts

Updated May 21, 2018

HI All,

Can any one clarify is All GL accounts are Offsetting accounts or bank related GL are Offsetting accounts...?

Can you explain what is offsetting account,, exactly 



  • 01 Sep 2014 5:00 pm Sonia Barwar Helpful Answer

     When we run the Automatic Payment Program(APP), the payment first goes to the clearing account instead of the main bank account. Now when bank sends the payment advise (EDS) than system automatically check the payments in clearing account with the bank advise and the matched payments gets cleared off from this account. The same amount is then automatically transfered to the main bank account.

    Clearing account is a system provided by SAP by which there is no need of doing bank reconciliation manually because system does the entries on receipt of bank confirmation automatically.