# Compensation, sett-off; balancing

- Canonical URL: https://www.gerhardmerk.de/compensation-sett-off-balancing
- Post ID: 590125
- Modified: 2023-07-25T21:01:09+00:00
- Language: en

## Definition

The settlement of mutual claims in money by way of offsetting; the compensation of a debt by a corresponding counterclaim (counter claim, cross claim). - If this occurs only between banks, it is generally referred to as clearing; in the case of companies, it is often referred to as netting. - In the case of securities orders, the settlement of purchases and sales for the account of a customer without the intermediary of the stock exchange. In Germany, banks have voluntarily undertaken to execute all orders via the stock exchange. - The exchange of goods for goods at the level of companies or states - as in the former Eastern bloc, for example - also known as barat(t) transactions and common where money cannot fulfill its function as an intermediate means of exchange. Of course, here too - and this is often overlooked - the parties to the exchange must always agree on a common measure of value; in the former association of Eastern bloc countries, this was usually the world market prices in U.S. dollars. - In shortage and planned economies, the - forbidden and punishable - exchange of scarce, generally sought-after goods for other things (goods or services). - See arrangement, beat, barat transaction, bed edge currency, clearing, fulfillment, money abolition, voucher, netting, exchange voucher, commodity money, payment, cigarette currency. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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