General Ledger clearing accounts and interfacing

When interfacing transactions from Accounts Payable and Project Accounting, you are required to specify a General Ledger account. The clearing account specified in each application must match the clearing account designated in the account group assigned to the asset in order for the clearing account to zero out each month.

Here is an example of how the clearing account is used when adding assets from Accounts Payable.

Debit Credit Source

  1. Asset Clearing (assigned on the distribution line of Basic Invoice (AP20.1))

 X AP175
Accounts Payable Record initial cost entry X AP175

  1. Asset

 X AM170
Asset Clearing (defined in Account Group (AM05.1)) Create General Ledger entries X AM170

Here is an example of how the clearing account is used when adding assets from Project Accounting.

Debit Credit Source

  1. Asset Clearing (defined on Activity Asset (AC10.3)

X AC160
WIP or Expense Transfer activity to Asset -Management system X AC160

  1. Asset

 X AM170
Asset Clearing (defined on Account Group (AM05.1)) Create General Ledger journal entries. X AM170