Posting with Clearing

Use

Using the posting with clearing function, you enter document line items and then select the open items to be cleared. Once all the prerequisites for clearing are fulfilled, the system clears the open items. The system generates one or more offsetting postings for the open items to be cleared.

Example Example

The following example is reflected in the figure below.

End of the example.

  1. A customer pays several receivables amounting to 5,000 USD by check. You enter the amount in the incoming checks account.

  2. To clear the receivables on the customer account, you choose the open items and complete the document entry transaction.

  3. The amount you enter and the items you select must balance to zero. The system automatically posts the incoming payment to the customer account.

  4. The system flags the open items as cleared.

  6. All four steps are performed in one procedure.

Key Features

In the clearing transaction, the system generates a clearing document that consists of the items you entered manually, and the offsetting entries it created automatically to balance the document to zero.

The system then flags these items as cleared. It enters a clearing document number and the clearing date in the cleared document items. These are the selected items and the items for the offsetting posting. The system usually adopts the posting date as the clearing date. If, however, the items you select for clearing have a posting date that comes after the posting date of the clearing document, the system uses the most recent posting date as the clearing date. The following figure shows the item that the system posted automatically in the above example. The item is cleared, and the corresponding document line item contains the clearing dates.

There are three functions you can choose from for posting with clearing. You can use a basic clearing function for any type of business transaction in which items need to be posted and cleared simultaneously. The two other functions are specially designed for incoming and outgoing payments.

Note Note

Some special G/L transactions, such as bills of exchange, are cleared using special functions. For more information about special G/L transactions, see Special G/L Transactions: Down Payments and Payment Guarantees and Special G/L Transactions: Bills of Exchange.

End of the note.

Activities

You can:

  • Clear several accounts and account types

  • Clear items in any currency

  • Clear items and post any differences

  • Clear items and enter any number of line items (for example, bank charges)

Note Note

You can also carry out posting with clearing and account clearing automatically using the payment program Usually, you run the payment program to pay vendor invoices. However, you can also use the payment program if you and your customers have agreed on a debit memo procedure (collection or direct debit procedure).

End of the note.