Offsetting entry and account determination

Hi friends,
The question I'm putting across might sound silly. I have tried a lot to understand these on my own but I still don't feel confident on my own understanding. Hence I'm seeking your help.
Can you please explain me the meaning of Offsetting Entry in SAP in layman language ? Could you also provide me some examples?
It would be great if you can answer the following questions as well-
    1. What is the purpose of the T/E key PRD and why is T/E key PRD required for movement type 101.
    2. For movement type 251 and posting string WA01, the account modifier is VBR. The G/L account assigned for GBB-VBR is 50100000 for valuation class 3000. Does it mean that a GI for sales of a material of valuation class 3000 will ONLY hit 50100000 and will not hit any other G/L account?
Thanks a lot for your help.
Rana

Hi Prabu and Praveen,
Thanks a lot for your response. Let me express what I understood and please correct me if I go wrong.
For mv.ty. 101, BSX and WRX are triggered to hit the assigned G/L accounts. Since offsetting is done to WRX for BSX, hence we don't need a GBB T/E key to make another offsetting entries.
But for 251 movement, the inventory account is credited and the COGS account is debited. If I look at the account determination, I see that G/L 50100000 is hit by GBB-VBR. So where is the other entry? Per my understanding, there should be an entry to BSX as well for 251.
Waiting for your response.
Thanks!
Rana
Addition- I checked the account grouping for movement type 251 but I didn't see any T/E key associated with it apart from PRD. So, if GBB-VBR makes the offsetting entry to a G/L account then where is the original posting?
Edited by: Rana Dutta on May 15, 2009 4:57 AM

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