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Verrechnen

Verrechnen is a German verb meaning to offset or settle mutual claims between parties, usually by netting one amount against another. In accounting and law, it denotes balancing accounts so that receivables and payables cancel each other out, or costs and revenues are netted against each other. The term can also describe the act of deducting one sum from another.

In practice, examples include "Die Forderung wird mit der Verbindlichkeit verrechnet" or "Kosten und Erlöse werden

Colloquially, sich verrechnen means to miscalculate or misjudge a calculation, for example "Ich habe mich verrechnet"

Etymology and related terms: The word is formed from the prefix ver- and the verb rechnen (to

verrechnet."
In
corporate
finance
and
tax
contexts,
Verrechnung
describes
the
settlement
of
intercompany
balances,
the
neutralization
of
cross-border
liabilities,
and
the
netting
of
payments
between
parties.
The
English
equivalents
are
set
off,
offset,
or
netting.
(I
miscalculated).
calculate).
Related
concepts
include
Verrechnung
(the
process
of
offsetting
or
settlement),
Aufrechnung
(a
legal
term
for
the
right
to
offset
a
claim),
and
Netting
(in
banking
and
finance).