Offsetting Entry

Offsetting Entry

In accounting, an entry on a balance sheet that sets another entry to zero. The offsetting liability may be either an asset or a liability. For example, if a bank has an outstanding loan for $10,000 and receives a $10,000 payment, the payment is recorded as an offsetting entry on the bank's balancing sheet. See also: Offset.
References in periodicals archive ?
The supervisor concluded that Nurse Dufault had withdrawn medication from the Ominicell without recording an offsetting entry for administration in the SMS system.
Under this wording glitch, pension cost would include a component for the actual return on the market value of plan assets, determined as of the end of the accounting period, without any offsetting entry in any other component of pension cost.
These dividend receipts are presented before deduction of taxes withheld in the income account, with an offsetting entry for taxes withheld in the unilateral transfers account.
A separate transaction is required for the offsetting entry.