Wednesday, June 6, 2007

Offset Accounts

Dynamcis AX performs lots of ledger posting using offset accounts. These are some of definitions i have for offset account.

One that reduces the gross amount of another account to derive a net balance. Accumulated depreciation, which is a contra account to fixed assets to obtain book value, is an example of an offset account. Discount on note payable, which is a reduction of notes payable to derive the carrying value, is another example.

OFFSET ACCOUNT is an account that is setup for elimination of a long or short position by making an opposite transaction.


1 comment:

  1. What is the meaning of Offset Account?

    I mean, if offset account is Bank, what does it mean?

    please explain.