The account you use to transfer money from an account to another account while you can’t move the money is known as a Clearing Account. These accounts generally have $0.00 balance because you can always take out the exact amount you entered. It can also be referred as a Barter or Wash Account.
If you don’t know the process to set up a clearing in QuickBooks Desktop then this article will be helpful for you. You can also contact us at our toll-free QuickBooks Support Phone Number +1800-324-6955 to get instant support.
Set Up A Clearing Account In QuickBooks Desktop
The steps provided in this article will help you to set up a clearing account. If you have multiple uses for this account then you may have to create one for each.
Manage Customers And AR
- Manage accrual basis bad debt.
- Move a Credit Memo from a job to another job in the same customer.
- Amount Transfer from on A/R account to another.
- Distribute the overhead expenses to your customers or classes through zero check.
- Record one check that pays invoices to two customers.
Manage Vendors And AP
- Move an amount from an AP account to another AP account.
- You can refund check from a vendor on behalf of another.
- You can transfer a bill or bill credit from a Vendor to another.
- Shift foreign currencies without having to convert then to your home currency.
- Create a receivable for a payable account.
- You can record a barter transaction with a company who is a customer and vendor both.
To Set Up A Clearing Account
- Go to Chart of Accounts from the List
- In the Chart of Accounts window, right-click anywhere and then click on
- Choose the Bank radio button from the Ad New Account
- You have an option to pay into a bank account through Receive Payments or Make Deposits.
- You have the option to pay out of a bank account using Write Checks or Pay Bills.
- The bank account shows up on the balance sheet and cash flow statements to balances and modifications in balances.
- For distributing expenses to overhead or class through a zero check then you should use a bank account as your Clearing account.
- Click on Continue.
- Provide the Clearing Account, Barter Account or Wash Account under the Account Name
- You must Not enter an opening balance
- Click on Save & Close.
To Use A Clearing Account
- Create a journal entry and add AR or AP from the account you are moving money.
- Add the Clearing account and save the Journal Entry.
- Create another Journal Entry and then add the Clearing Account.
- Add the AR or AP account to which you will be moving the money.
- Link the journal Entries together in Pay Bills or Receive Payments.
Reach Us For Support
Hopefully, this article was helpful for you and you are now able to set up a clearing account in QuickBooks. However, it can be a bit complex process for beginners and they may require help. In such situations, you can contact us at our toll-free QuickBooks tech Support Number +1800-324-6955 and get answers for all your queries. You can also get support from out QuickBooks Support department if you are facing any kind of issue in your QuickBooks software.