Definicja balance netting

The formation of the total balance of a number of accounts of the same account holder and statement on the balance sheet side (assets or liabilities) that corresponds to the total balance (debit or credit) of the group of accounts.

In Germany, for example, balance netting is a legal requirement. There is a law requiring that under certain circumstances the receivables from and payables to the same customer must be offset against each other.

In the context of general ledger transfer, balance netting is realized as follows. First, before transfer, all the flows from the group of accounts of the same account holder are added. The +/- sign of the total amount governs on which side of the balance sheet (assets or liabilities) the individual totals of the accounts involved are posted. Depending on the balance, the individual totals are posted as debit or credit so that the balance on the general ledger matches the total balance of all individual accounts.