How do I use the Cash/AP Clearing Account?

To record monthly journal entries to a clearing account, update Administration - GL Accounts with the GL Account that matches the Entity's Chart of Accounts.

Since Crunchafi�s Lease Accounting software is not an Accounts Payable system, lease payments are posted to the Cash/AP Clearing account. We recommend creating an account in the Chart of Accounts that can be used to reconcile lease payments.�

When making payments from your AP system, post the payment to the same account so the Journal Entry creates an offset (credit) to the AP amount (debit).

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Example:

Bonnie posts her monthly rent invoice for the operating office lease to the clearing account. She records this as AP through her system which creates the following entry:

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