I don’t usually ask myself questions, but if I did it would probably be “Self, what is an Offset Account” if I had to work with the Financials with Shares model in PerformancePoint Planning.
You may be asking yourself, “Self, what is an Offset Account? What is a Balancing Account for that matter?” Well, when an IC reconciliation job runs it looks at the difference between the values recorded by the buyer and the seller. In this case, the seller recorded the transaction at $50.00 higher than the buyer. IC reconciliation always assumes the buyer’s value is correct and so we must reduce the seller’s value by 50 bucks. The offset account (that we set in the model properties) is considered a “seller’s account” so adding -$50.00 will bring the whole shebang into balance. But, our ancient Greek accounting rules tell us that we need to record a double entry for this transaction. Enter: the balancing account. The balancing account will always get a double-entry for the same amount and opposite sign as the offset account.
PerformancePoint Server Information by Ajay Singh: InterCompany Reconciliation
No comments:
Post a Comment