cancel
Showing results for 
Search instead for 
Did you mean: 
Subscribe

Dear All,

Can anyone tell me the functionality of Clearing account. What is clearing account, why do we need this, what not happen without this...

Regards,

Suresh Patipati.

0 Likes
View Entire Topic
Former Member
0 Likes

Clearing accounts are GL accounts managed as OPEN ITEMS. This is usually created for bank accounts and other expenses that you want to keep track. For some, they set up GL accounts as clearing account so it will be easier for them to analyze which are paid or not since when you display the line items, you will be able to display CLEARED and OPEN ITEMS.