Habenkonto

Habenkonto is a term from German double-entry bookkeeping used to describe accounts that increase on the credit side (Haben) and typically show a credit balance. In standard account classification, accounts are divided into Habenkonten and Sollkonten. Habenkonten include liability accounts, equity accounts, and revenue or income accounts; Sollkonten include asset accounts and most expense accounts. The distinction helps determine how transactions are posted: a sale creates a credit entry on a revenue (Habenkonto) and a debit entry on the corresponding asset or cash (Sollkonto).

Examples of Habenkonten are Umsatzerlöse (sales revenue), Zinserträge (interest income), Verbindlichkeiten (liabilities), Rückstellungen (provisions) and Eigenkapital (equity). By contrast, assets and most expenses are typically Sollkonten. The normal balance on a Habenkonto is credit, meaning increases are posted to the Habenseite and decreases to the Sollenseite.

In practice, Habenkonten are often closed to equity or profit at period end through closing entries, depending on the account type. The term is widely used in German-speaking accounting literature and practice; some sources spell it as "Habenkonto" (without the umlaut in the middle), but both forms refer to the same concept and function within a double-entry system.