Offset Account

Hi all,

When ever we are updating Journals(Movement/Transfer) or creating SO/PO we include offset account, what is offset account?

why do we use offset account?

Offset account is required for the movement journal(not for transfer). Movement journal is used for issues(other than production issues) and miscellaneous receipts. If an issue is done, the posting will credit the inventory receipt account and for every credit there should be one or more equivalent debits, the offset account here will hold the debit amount(vice versa)