Meaning of "Offsetting entries for stock postings"

[Former Member]

Hello SAP Guru's,

What is meant by "Offsetting entries for stock postings"? How is it different from "stock postings"? Can you please give me an example?

Sincerely,

Ketan

[Former Member · Accepted solution]

Hi

Offsetting entries are nothing but posting entry for an corresponding Debit/Credit entry

For example:

when you do PO for Stock material , during GR system will

Debit the Stock account for the value to be paid the Vendor

Credit Gr/Ir ( temporay clearing account and afterwrds tot he vendor account )

During Inital Stock Upload ( ie when you migrate from legacy system to SAP system , Stock of that materail as to be uploaded in to the sap system ), system will

Debit the Stock account with the value of the qty

( in this case you need not give anything to the vendor but Credit Entry to be posted as per the Fianaacial norms )

Hence Credit entry will be posted to an Off setting account

[Former Member]

Ketan,

For Inventory and invoice verification, there exist two types of postings

1. those that happen w.r.t an internal processing key (very generalized)

2. Those that require additional validation- Require Account grouping

You do not have to worry much about the first kind as they are defined internally in the system and all you have to do is assign the GL account to the Transaction key or the Int. Processing key and the values are posted directly to these accounts.. This is an example of a Stock/ Inventory posting .. These are dependent on the value string assigned to the movement type.. ex.. WE06

The second kind is dependent on the Account Grouping which is assigned to the movement type as an additional validation for Offset posting. This way you could use the inventory posting which is very generic, differentiated for Order settlement- AUA, Initial stock balance entry- BSA, VBO for consumption posting, GR w/o PO- ZOB. etc.. so although these are all Goods receipts/ stock postings, you have differentiated the posting based on the account grouping code.

Hope this helps