About clearing accounts
Some transactions are complex. With clearing accounts, you can process transactions that prove you have posted the amounts correctly. In addition, clearing accounts provide a means of posting transactions or balances to accounts that normally do not allow direct posting.
Note: Clearing accounts do not carry a balance for any length of time. If you want to hold a transaction in an account, use a suspense account.
Before posting a transaction, make sure the clearing account does not contain a balance. Posting a transaction to a clearing account moves a balance into the account. To move the balance from the clearing account, post a transaction or series of transactions against the clearing account. When the account balance reaches zero, you have completely posted the balance.
Suppose that you have transferred money from a general checking account to a payroll checking account. Using a clearing account, you would create a transaction in each account.
|
Window of entry |
Debit |
Credit |
|---|---|---|
|
Checks/Bank Charges |
Clearing |
General Checking |
|
Deposits/Interest |
Payroll Checking |
Clearing |