Accounts Payable Clearing

Discussion in 'Accounting' started by aliasger.jaffer@gmail.com, Mar 20, 2005.

  1. Guest

    Hi,

    I am working with an accounting software and I see that there is an
    account, Accounts payable clearing, that keeps on increasing, and have
    no clue what it represents...will appreciate anyone with some input
    about that account...

    Thanks,

    Aliasger
     
    , Mar 20, 2005
    #1
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  2. Ken Russell Guest

    More information please Aliasger.....

    Is it in debit or credit? What is the source of the entries? Give some
    examples of debit and credit narrations.

    Depending on your software and financial procedures, this account could be a
    control account fort accounts payable, but it shouldn't keep on increasing.

    It could also be a clearing account for unidentified charges from the
    accounts payable process, in which case it should be reconciled and all
    entries charged out to their appropriate accounts. A clearing account must
    end up with a zero balance.

    --
    Ken Russell


    Remove yourhat to reply by e-mail
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    Ken Russell, Mar 20, 2005
    #2
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  3. Joe Canuck Guest

    A clearing account is used to record received inventory until it has
    been reconciled with the invoice.
     
    Joe Canuck, Mar 20, 2005
    #3
  4. Allan Martin Guest


    Many accounting applications like Accpac Advantage series are batch
    processing applications. The Puchase order system can record the receipt of
    goods or services and charge the expense or Inventory Account and credit an
    "accounts payable clearing account". When the actual vendor invoices are
    posted in accounts payable an entry is generated and the "accounts clearing
    accounts is charged and AP is credited. If the clearing account is geting
    larger then the vendor invoices are probably not being posted. This may not
    be a problem because in many cases goods are received before the actual
    invoice.
     
    Allan Martin, Mar 21, 2005
    #4
  5. ESSAM

    Joined:
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    it's used for many purposes to adjust some entries with your Accounts receivables or if you have more than Organization you can charge to this account and then make inter-company entries to move the expense to another org , also if you need to move invoice from account to another you will use this account as clearing
     
    ESSAM, Jan 19, 2018
    #5
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