In journals and on purchase orders, is normally the balance sheet account, where the acquisition value of the new fixed asset is debited. This account is not visible in the journal and cannot be replaced in transactions.
is also a balance sheet account. In the general journal and in the fixed assets journal, this account often will be the bank account that is used to pay for the acquisition of the asset. The offset account is a default account, which is suggested in the journals. It can be changed in the journal to any other account from the chart of accounts or to a vendor account, if the fixed asset has been bought from a vendor.
When or in are used for fixed asset acquisitions, the offset account for the fixed asset transaction is replaced by the vendor account selected for the transaction.
For acquisitions posted using the journal in , the fixed asset is not bought from external sources, but transferred from the company's own inventory. Therefore, the offset account is an inventory issue account for the inventory item in .