CAPEX fixed asset budget

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Posted on by imran ul haq

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Hi Friends,

I was exploring the Fixed asset budget journal, and having below doubts:

1. While posting the fixed asset budget journal there is an offset account, why do we need to define the offset account as even after posting the voucher posted doesn't have the financial entry.

2. And after transferring to the budget register entries for each budget line there is a corresponding negative line, I believe that came because we defined the offset account while passing the budget journal.

Thanks in advance.

Regards,

Imran Ul Haq

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Hana Xue Microsoft Employee on at

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Hi,
You can refer to the link below, which provides a good explanation of the role and benefits of offset accounts.
Offset Accounts | Example | Journal Entries - Accountinguide
Best Regards,
Hana
imran ul haq 4,057 on at

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Hi Hana,

Thanks for your reply.

I do understand the importance of the offset account, it's use as per accounting double entry system in account.

My concerns are like why we need to put the offset account in Fixed asset Budget journal, what is the use as even after posting no financial entry passes.

And after transferring the journal to budget in the Budget register entries we have two lines, one for the Fixed asset account and other offset account.

Regards,

Imran Ul Haq