General information

Clearing is an association between two single-sided entries registered on a clearing account. The basis for clearing single-sided entries are payments (receivables, payables) which are generated by source documents. Based on posted payments, single-sided entries can be cleared on book accounts. Clearings provide information on unpaid journal entries affecting the balance of a clearing account.

<<Payments>> are completed on the level of document payments, whereas clearings are made on the level of single-sided entries. Payment completions and clearings are an integral whole, which is why a transaction is completed only once – either from the level of payments or single-sided entries.

Journal entries dedicated for clearing are generated as a result of:

• posting of receivables or payables, originating from documents, with the use of a posting scheme in which the amount primitive – Payment – has been used to post a receivable or payable
• adding single-sided entries directly in a ledger onto clearing accounts

It is possible to clear both unconfirmed and confirmed single-sided entries. Clearing amount is the lower amount of the amounts remaining to be cleared. Clearing operation can be initiated if amounts being cleared:

• have the same signs and are registered on the opposite sides of an account (Debit/Credit)
• have the opposite signs and are registered on the same side of account

Clearing operations can be performed both from the level of the Clearings list and from the tab Clearings DR/Clearings CR of a journal entry. Adding a clearing from the level of a single-sided entry has the same results as in the case of adding it from the level of the list Clearings.

Mechanisms of creating clearings

Clearings can be created automatically or manually. Automatic clearings are created without additional interference of a user. Note that using the option Automatic Clearing, which is available from the level of the Clearings list or the tab Clearings DR/Clearings CR of a single-sided entry, is also a form of creating manual clearings.

Creating clearing automatically

Automatic clearing refers to single-sided entries generated as a result of posting a document payment.

A clearing is created automatically when:

• completing/compensating posting documents
• posting the second of the completed/compensated documents

Creating clearing manually

Manual clearing can be created from the level of:

• Clearings list
• tab Clearings DR/Clearings CR of a single-sided entry

Clearing of single-sided entries, generated as a result of posting of a document, is accompanied by automatic completion/compensation of source documents.

Mechanism of adding a compensating single-sided entry

Regardless of the way in which single-sided entries are cleared (automatically or manually), a compensating single-sided entry can be generated along with a clearing operation.

A compensating single-sided entry is generated due to accountancy rules. In case of associating two entries registered on two different accounts, an appropriate amount is posted to one account and unposted from another.  A compensating single-sided entry associates two clearings accounts to which payments are posted.

Configuration settings relating to compensating single-sided entries

In definition of a particular accounting period, there are configuration parameters relating to generation of compensating single-sided entries and applicable in a given accounting period. These parameters apply to the setting of such information as:

Ledger – ledger in which generated compensating single-sided entries are registered

Posting Date – date of posting a compensating single-sided entry, that is the date under which a compensating single-sided entry is registered in the books, Possible dates to select are: Date of the later single-sided entry or System date.

Clearing date

An important information when clearing single-sided entries is a date under which cleared single-sided entries are registered and hence considered as cleared.

Clearing date is not the same as the date of physical clearing of single-sided entries. Clearing date is a posting date of a latter (the most recent) of the cleared single-sided entries – it is determined on the basis of a posting date from the header of a journal entry. If a compensating single-sided entry is part of the clearing process, a date of that single-sided entry has also an impact on determining a clearing date.

Clearings of single-sided entries registered in different periods

In the system, it is possible to clear single-sided entries registered in different accounting periods. To be able to clear such single-sided entries, it is necessary to associate the accounts selected in particular accounting periods in the single-sided entries being cleared. Association of accounts ensures continuation of transactions in subsequent accounting periods. It is independent of the numbers of accounts at the turn of accounting periods. In case of changing an account number between accounting periods, it is necessary to ensure that these accounts are associated.

The list of clearings contains single-sided entries dedicated for clearing for a given clearing account. Single-sided entries are presented in compliance with their posting date selected in the filter option Posting Date. Using this option, it is possible to search for clearings for any period composed of even several reporting periods. On this list, it is possible to filter the data of a given single-sided entry in system currency or/and in the currency of the selected account.

List of clearings in multi-company structure

Single-sided entries on the list of clearings are displayed according to generally applicable rules regarding visibility of documents in a multi-company structure. Entries are visible on the list if their owner is a company within which an operator works, a child center of the current center or if they are shared by another center.

The menu of the clearings window is composed of two button groups:

• Clearing with buttons: [Add], [Edit], [Delete], [Refresh], [Source Document], [Automatic Clearing], [Associate Only Single-sided Entries]
• Printouts with a button: [Print]

By default, the list of clearings in composed of the following columns: Number in General Ledger, Number in Ledger (the presence of this column depends on setting of the parameter Numeration only in ledger, which is available in accounting period definition), Document Number, Account, Posting Date, Amount, Amount Remaining DR, Amount Remaining CR, Currency, and Description.

From among the additional columns, which are available for selection, there are: Amount, Customer/Vendor, Date of Issue, Date of Transaction, Document System Number, Due Date, Number, Owner, Remaining Credit, Remaining Debit, Subject To Clearing, VAT Rate.

The list of clearings is loaded upon selecting a clearing account in the field Account, on which single-sided entries have been registered, and upon filtering the data. The list is presented in the form of a tree, that is single-sided entries cleared with a single-sided entry registered in the given account can be also presented. Those single-sided entries are displayed upon clicking on the plus icon by a specific single-sided entry. If a given single-sided entry of the account being analyzed is cleared with another single-sided entry, the icon is active (black). If a single-sided entry is not cleared, the plus icon is grey.

Options available on the Clearings list

Add – using this option it is possible to clear single-sided entries and to complete their payments in the case of single-sided entries derived from posted documents or to just clear single-sided entries in reference to single-sided entries registered directly in ledgers.

Edit – allows editing of a single-sided entry

Delete – allows deleting existing clearings of single-sided entries

Source Document – previews a source document, that is a document which posting resulted in generation of a single-sided entry

Automatic Clearing – opens the list of automatic clearings on which it is possible to associate single-sided entries

Associate Only Single-sided Entries – using this option, it is possible to clear single-sided entries without completing simultaneously the payments from documents in the case of single-sided entries generated as a result of posting the documents

Filtering on the list of clearings

Detailed descritpion of functioning of filters can be found in category <<Searching and filtering data>>.

Options available in the filter pane are the following:

Owner – allows filtering the lists of clearings by their owners specified in journal entries

Filters and parameters on the list are divided into three basic categories: General, Side, and Posting Date.

General – parameters available in this section are used to filter single-sided entries on a clearing account by

• Account – filters single-sided entries by a selected clearing account. The account number can be entered manually or by referring to the chart of accounts upon clicking on appropriate button. The chart of accounts, opened by default in tab List, is filtered to accounts of Clearing type.
• Clearing status – depending on the selected parameters, it filters either cleared or uncleared single-sided entries or those not subject to clearing. Statuses of displayed single-sided entries are presented for the moment the clearing list is filtered
• Status – filters the list according to single-sided entry status. Available options are: All, Unconfirmed, Confirmed, Reversed
• Currency – filters single-sided entries by the following currency values:
  • System currency – amounts presented in columns: Amount, Amount Remaining Dr, Amount Remaining Cr are expressed in the system currency. It refers to single-sided entries both in the system currency and in a foreign currency. The symbol of the system currency is presented in column Currency
  • Account currency – amounts presented in columns: Amount, Amount Remaining Dr, Amount Remaining Cr are expressed in the account currency, i.e., in the currency of single-sided entry. This refers to single-sided entries both in the system currency and in a foreign currency. The currency symbol of single-sided entry is presented in column Currency
  • System and account currency – amounts presented in columns: Amount, Amount Remaining Dr, Amount Remaining Cr are expressed in the account currency, i.e. in the currency of single-sided entry. The currency symbol of single-sided entry is presented in column Currency. There are also the following columns: Amount – [], Amount Remaining Dr [], Amount Remaining Cr []. In the brackets [], there is the symbol of the system currency. This value is used only for currency accounts
• Ledger – filters the list by ledgers in which single-sided entries are registered. Using this option, it is possible to filter single-sided entries by all ledgers +*OB*, *OB*or by a particular ledger

Side – allows for filtering the list by posting sides on indicated clearing account – Debit side, Credit side. The names of the sides agree with the names specified in the accounting module configuration

Posting Date – allows for filtering single-sided entries by their registration dates. Available filter options are: day, month, year, range of dates, current month, previous month and any date. A range of dates option enables the selection of a particular time interval (also from beyond the dates of the accounting period).

Attributes – allows for filtering basing on attributes in single-sided entries. Selecting the button [Attributes] opens Attribute Conditions window, where it is possible to define a filter including single-sided entries with specific attribute values. In the filter, it is possible to use attributes of textual and list type only.

General information

On the list of clearings, it is possible to clear single-sided entries with the help of one of the three available options: [Add], [Associated Only Single-sided Entries] and [Automatic Clearing]. This way, single-sided entries can be cleared in the following relation:

• One to one
• One to many

Add option

In the case of single-sided entries generated from posted documents, using the option [Add] it is possible to both clear those entries and to complete their payments, whereas in the case of single-sided entries registered directly in ledgers, it is possible to clear the entries.

Mechanism of the Add option

Selecting the option [Add] displays the list of single-sided entries possible to clear on indicated account and on appropriate side (Debit or Credit, depending on the type of payment being completed: receivable or payable). On the list, it is possible to indicate several single-sided entries which, in this way, can be cleared in one-to-many relation. The layout of the list is the same as the list of journal entries on account.

The list Journal entries on account is by default opened with the following settings:

• Accounting Period – current accounting period changeable also to a period Any
• Posting Date – current month changeable to any value
• Document Status – All, changeable to either confirmed or unconfirmed single-sided entries
• Ledger – All + *OB, changeable to a particular ledger
• Account Type – All, changeable to a particular account type
• Status – contrary to an account side in a single-sided entry, from the level of which a clearing is made, that is, if the side of a clearing account is, in a single-sided entry, set to Dr, then single-sided entries presented on the list are uncleared and registered on Cr side, and changeable to a different status
• Account From/Account To – account retrieved from a single-sided entry, from the level of which clearing is made; changeable
• Excluding – empty value, possible to specify its definition
• Currency – system currency set by default, changeable

After selecting an appropriate journal entry or journal entries, single-sided entries are cleared. If automatically posted documents were the sources of single-sided entries, then the source documents are automatically paid/compensated along with a clearing operation. If the amount of paying entry is greater or equal to the amount of entry being paid, it will be paid entirely. In case the amount of the paying entry is lower than that of the entry being paid, the entry will be paid partially.

Clearing entries can be displayed on the list of clearings under the entry being cleared upon clicking on the icon with a plus symbol available by single-sided entry.

From the level of the clearing list, it is also possible to preview the form of a cleared single-sided entry, on which detailed information about single-sided entries clearing it is presented (in tabs Clearings Dr/Clearings Cr respectively).

Partial clearings

In certain scenarios it is necessary to determine an amount to be cleared. Such amount can be determined on the list of single-sided entries to be cleared (window Journal Entries: Account) by checking the option Partial clearings. Selecting this option activates a column To Clear, in which amount of partial clearing is determined.

Example

A journal entry, in which a clearing account on Dr side was selected in one single-side entry, was registered in the system. The single-sided entry is not cleared (the amount remaining to be cleared equals to the amount of the single-sided entry = 10 000 USD)

On the list of clearings, select the clearing account on which the journal entry was registered and then filter the list

Upon clicking [Add] from the level of the single-sided entry, the list of uncleared single-sided entries (on Cr side) will open, on which there are two single-sided entries: one of which amounts to 11 000 USD (amount remaining to be cleared = 6 000 USD) and the other amounts to 5 000 USD (amount remaining to be cleared = 5 000 USD).

Check the parameter Partial clearings and enter appropriate values in the column To Clear

First single-sided entry (amount to be cleared = 5 000)

Second single-sided entry (amount to be cleared = 5 000)

After the operation:

Single-sided entry amounting to 10 000 USD is cleared entirely

Single-sided entry amounting to 11 000 USD is cleared partially (amount remaining = 1 000)

Single-sided entry amounting to 5 000 USD is cleared entirely (amount remaining = 0)

If the selected amount exceeds the amount remaining to be cleared on the form of single-sided entry being cleared and it is not possible to clear it entirely, the single-sided entry will be cleared only for the remaining amount to be cleared.

Clearing of single-sided entries registered on different accounts

In the system, it is possible to clear single-sided entries registered on different clearing accounts.

In order to clear such single-sided entries from the level of a journal entry, in tab Clearings of edited single-sided entry, select the button [Add]. Entries subject to clearing and associated with an account selected in the single-sided entry being cleared will, by default, be displayed in that window. Values specified in fields Account From, Account To can be modified (for instance, to values related with the same or different entity or not related with any entity). After such change, journal entries associated with the newly selected account will be displayed on the list. After selecting a journal entry, entries will be compensated through a compensating single-sided entry which, in such situation, is created automatically by the program and is part of a clearing.

Associate Only Single-Sided Entries option

Clearing of single-sided entries with the use of [Associate Only Single-sided Entries] option is not accompanied by making payments to the source documents. This option allows for clearing single-sided entries without making simultaneously payment to documents in the case of single-sided entries generated as a result of posting of documents.

The functionality of [Associate Only Single-sided Entries] option can be used for evaluating the expenditure of monetary measures expressed in foreign currencies, calculating an account used for registering of monetary means in transit or reconciling the balance of account 303 (Purchase Calculation). This option may be used wherever there is a need for clearing entries only.

Selecting this option displays a list of journal entries possible to clear on selected account and on appropriate side (Debit or Credit, depending on the type of payment being completed: receivable or payable). On the list, it is possible to indicate several single-sided entries and hence to clear them in one-to-many relation. The layout of the list is the same as that of journal entries on account.

The rules of partial clearings and clearing of single-sided entries on different accounts with the help of the option [Associate Only Single-sided Entries] are the same as those for the option [Add].

Automatic Clearing option

The purpose of automatic clearing functionality is to support the user in the process of clearing single-sided entries by searching out single-sided entries by one specified criterion and clearing them.

Selecting the option [Automatic Clearing] opens the window Automatic Clearings, in which it is possible to automatically associate single-sided entries. Clearings are generated here on the same rules as they are generated with the help of the option [Add] or [Associate Only Single-sided Entries] on the clearing list. Depending on the selected method, clearing of single-sided entries generated in the result of posting of documents is accompanied by automatic completion of source documents (option [Add]) or clearing of single-sided entries does not involve completion of source documents (option [Associate Only Single-sided Entries]).

Automatic clearings are available from the level of the clearing list under option [Add Automatic Clearing].

Clearings window is composed of three sections: Associate Single-Sided Entries, Association Method, Time Interval, and the list of single-sided entries subject to automatic clearing.

Associate single-sided entries section

In this section, it is possible to select one of the following options:

• Current – the only available and default option if automatic clearing operation is called from the level of tab Clearings CR/DR on single-sided entry form, and it is also available for the highlighted record on the list of clearings. In the field, number in a ledger (depending on the numeration configuration) of a current single-sided entry is displayed; if the automatic clearing option is called from the level of the list of clearings, option Current is inactive if none of the single-sided entries has been checked. Selecting this option means that only currently selected single-sided entry must be associated
• On Account – the only available and default option if it is called from the level of the list of clearings, both from the level of a highlighted record and from the list. If an account is selected in a list, it is automatically uploaded in field On Account. If account is not selected, field On Account remains empty and it is possible to select account from the chart of accounts. Selecting this option means that all single-sided entries registered on the selected account must be associated

Association Method section

In this section, it is specified how a single-sided entry is to be associated with other single-sided entries. The searching is based on one given criterion:

• By Number – includes single-sided entries with the same document number, i.e. values entered in the field Document Number on the single-sided entry form
• By Amount – associated single-sided entries have compliant amounts
• Chronologically – allows for associating single-sided entries according to their date

Time Interval section

Within this section, the user may enter conditions which narrow the list of displayed single-sided entries which will be subject to clearings, to single-sided entries added in a specific time interval.

List of single-sided entries – contains entries fulfilling the given association criterion.

Predefined columns available on the list: Number in General Ledger, Number in Ledger (depending on the selected numbering configuration method), Document Number, Account DR, Account CR, Posting Date, Amount, Amount Remaining DR, Amount Remaining CR, Currency, Description, To Clear.

Moreover, it is possible to select also columns which, by default, are hidden: Customer, Date of Issue, Date of Transaction, Document System Number, Number, Subject To Clearing, VAT Rate.

The functionality of [Automatic Clearing] option can be used for evaluating the expenditure of monetary measures expressed in foreign currencies, calculating an account used for registering of monetary means in transit or reconciling the balance of account 303 (Purchase Calculation). In these cases, after searching appropriate single-sided entries, it is possible to use the option [Associate Only Single-sided Entries]. Using the functionality, it is also possible to clear single-sided entries and make payments with the help of the option [Clear], which can be used, for instance, to clear collectively an account dedicated, for example, to handling of transactions with occasional customers in a single batch.

Example

The operation of automatic clearing will be presented on the example of chronological association of single-sided entries on a book account.

• From the list of clearings, select [Automatic Clearing]
• In field Account, select a clearing account and in section Association Method, select the option Chronologically

• From the button group Actions, select [Search]. Single-sided entries suggested to clear will be displayed on the list

• Upon selecting a check box in the column To Clear by single-sided entries which must be subject to clearing and then selecting the button [Clear] or [Associate Only Single-sided Entries], the system will clear the associated single-sided entries

A clearing can be added from the level of a single-sided entry entered to the ledger.

The functionality of clearings is available on single-sided entry item associated with a clearing account, in tab Clearings (Clearings DR or Clearings CR respectively, depending on which side of single-sided entry a clearing account is specified). When clearing of single-sided entries, a user can select one of the following options:

• [Clear]
• [Associate Only Single-Sided Entries]
• [Automatic Clearing]

These options work in the same way as those in chapter describing the clearing operation from the level of the Clearings list. With these options, single-sided entries can be cleared from journal entry level in the following relations:

• One to one
• One to many

When performing clearing from the level of a particular single-sided entry (after selecting the option [Add] or [Associate Only Single-sided Entries]) opens the window Journal Entries: Account. After selecting a relevant journal entry from the list of single-sided entries to clear (window Journal Entries: Account), the entries are cleared. If automatically posted documents were the sources of single-sided entries, the clearing operation is accompanied with completion of document payments. If the amount of the paying entry is greater than or equal to the amount of entry being paid, the entry is paid entirely. Value in field Amount Remaining in tab Clearings DR/Clearings CR of particular single-sided entry will equal to zero. In case the amount of the paying entry is lower than that of the entry being paid, the entry will be paid partially. Value in field Amount Remaining will be lower than the entry amount and greater than zero.

Journal entries, clearing a given single-sided entry, are presented on a cleared journal entry, in tab Clearings DR/Clearings CR.

Single-sided entries, which are not associated with any source document, are cleared in the same way as single-sided entries associated with a document with the use of buttons [Clear] or [Associate Only Single-Sided Entries] on the list Clearings.

Clearing of single-sided entries with the help of the option [Clear] is possible only if both single-sided entries are associated with a source document or both single-sided entries are not associated with a source document If only one of the single-sided entries is associated with a document, the following message will be displayed when attempting to clear such single-sided entries: “Impossible to complete source documents. Verify their status or select clearing without completion option.” If this is the case, the option [Associate Only Singlesided Entries] should be used.

In case journal entries were associated improperly, it is possible to undo clearing manually or automatically. To do so, it is necessary to highlight the paying entry and select the button [Delete].

A clearing can be removed manually from the level of:

• Clearings list
• Tab Clearings DR/Clearings CR of a single-sided entry

When removing a clearing, the relation between the source documents of the associated single-sided entries (completion or compensation) is automatically removed. This refers to single-sided entries which were generated as a result of posting document payments with the help of an appropriately designed posting scheme.

Clearing can also be removed automatically while deleting a journal entry which single-sided entry is participating in clearing. In this case, depending on user’s decision (answering Yes or No to the displayed question), the source documents may still be paid/compensated or their association can be removed.

Clearing can be removed between both unconfirmed and confirmed single-sided entries.

Deleting clearing on a contra entry

In the case of a contra entry which has been cleared with another single-sided entry, clearings are removed only at the moment of confirming the contra entry. After the confirmation, previous associations are deleted and the correcting single-sided entry is automatically cleared with the single-sided entry being correction.

General information

Currency clearings are connected with registration of and making payment to currency documents which are posted onto accounts kept in currencies different than system currency. All the rules and mechanisms of clearing single-sided entries denominated in foreign currencies (with the help of options [Clear], [Associate Only Single-sided Entries], [Automatic Clearing]) are the same as those of clearing single-sided entries denominated in foreign currencies. Moreover, when clearing single-sided entries registered with different exchange rates, an Exchange Rate Difference document is generated. The level from which single-sided entries are cleared, that is the Clearings list or single-sided entry, is of no importance – the effect of clearing single-sided entries is always the same. A single-sided entry originating from a posted Exchange Rate Difference document is always assigned to a single-sided entry with higher exchange rate.

Parameter Currency posting, available on a posting scheme element, is also very important in the case of currency clearings. If it is checked, it means that the element of a posting scheme is defined for posting of documents in a foreign currency on accounts kept in a foreign currency. Only if it is checked, values on the account will be expressed both in the currency of a payment/cash-bank transaction and in the system currency. This enables generation of exchange rate difference documents resulting from clearing of single-sided entries as well as correct clearing of single-sided entries.

In case clearing of single-sided entries is a consequence of making payments to posted documents denominated in a foreign currency with different exchange rates, an Exchange Rate Difference document is created. But in this case, the Exchange Rate Difference document is not posted automatically with the default posting scheme. It must be posted manually from the level of Exchange Rate Documents list. Single-sided entries are cleared entirely not until the last document, participating in the completion of document payments, is posted, which is exactly the Exchange Rate Difference document. A common situation within currency clearings is in Comarch ERP Standard system having a clearing of single-sided entries without a ERD document posted. If this is the case, one of the single-sided entries remains uncleared for the amount of that ERD document.  By posting the Exchange Rate Difference document, single-sided entries will be cleared entirely.

It is possible to clear single-sided entries and make payments to their documents (with the help of the option [Clear]) only if both cleared single-sided entries fulfill an additional condition (except for the general clearing rules), meaning that the exchange rate in the single-sided entry is the same as that in the source document.

Clearing of single-sided entries denominated in a foreign currency

Single-sided entries denominated in a foreign currency and associated with a source document can be cleared with the help of the option [Clear] from the level of:

• Clearings list
• Tab Clearings DR/Clearings CR of a single-sided entry

The process of generating a clearing determined in foreign currencies is performed the same way as when generating a clearing in the system currency, but in this case an Exchange Rate Document is also generated. The Exchange Rate Difference document is posted automatically with the use of the default posting scheme. A single-sided clearing created as a result of the posting also participates in the clearing and is an integral part of the clearing.

Example

• A Sales Invoice (SI) document denominated in EUR at the exchange rate 1EUR = 4PLN and a Cash Deposit transaction denominated in EUR at the exchange rate 1EUR = 5PLN have been added.
• Both documents have been posted with correct schemes.
• On the list of clearings, it is necessary to indicate the clearing account on which both documents were posted and filter the list.

• From the level of the first single-sided entry, it is necessary to select option [Add]. List of journal entries on account is opened, where the user selects the second single-sided entry and confirms the selection by clicking [Select].
• The system clears the single-sided entries. Because they are expressed in a foreign currency at different exchange rates, an Exchange Rate Difference document is also generated and posted. A single-sided entry resulting from posting of the Exchange Rate Difference document is an integral part of the clearing and participates in it.

In accordance with the basic rule of clearing operations, completion of the associated source documents is carried out automatically by the system as well. An exchange rate difference document has also been generated.

Clearing of single-sided entries denominated in different currencies.

In the system, it is possible to clear (and complete) single-sided entries in different currencies. This functionality refers only to single-sided entries which source documents derive from posting of:

• Cash-bank transaction denominated in a foreign currency and payment denominated in the system currency
• Cash-bank transaction denominated in a foreign currency from cash-bank transaction denominated in the system currency

An Exchange Rate Difference document is not created as a result of the clearing.

Deleting clearings of single-sided entries denominated in different currencies

In the case of clearing an unconfirmed single-sided entry generated as a result of posting an Exchange Rate Difference document, it will be removed automatically along with deleting the clearing. If deleting a clearing deletes also a completed payment/compensation of a document, whereas the completed payment/compensation is associated with an Exchange Rate Difference document, the document will be deleted automatically along with removing associations between the documents.

In the case of clearing an unconfirmed single-sided entry generated as a result of posting an Exchange Rate Difference document, it will be removed automatically along with deleting the clearing. Clearing of the associated single-sided entries can be deleted only after the contra entry has been confirmed.