Entering an Offsetting Account (Oracle General Ledger Users' Guide)


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Entering an Offsetting Account

Enter an account in the Offset line to specify the account to use for the offsetting debit or credit from your allocation. The Offset account is usually the same account as formula line A to reduce the cost pool by the allocated amount.

When the result of your allocation formula is a positive number, the resulting journal entry debits the target accounts and credits the offset account. When the result of your allocation formula is a negative number, the resulting journal entry credits the target accounts and debits the offset account.

Note: The offset account must conform to the allocation formula rules for offsetting accounts. Be sure to also follow the account segment cross-validation rules. The validation program does not check for account cross-validation rule violations. If you enter an offset account that violates a cross-validation rule General Ledger creates invalid journal lines when you generate the formula. You must correct the resulting journals in the Enter Journals window before you post.

Entering an Offsetting Account

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