How does Clearing Account work on Commerce Sync?

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How does Clearing Account work on Commerce Sync?

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The payments from your sales information are transferred into one or more Clearing Accounts. This creates a credit to a deposit or asset account. Commerce Sync provides flexibility for payment tracking:

  • Default Clearing Account: all payments, regardless of payment type, are transferred into this account in your Chart of Accounts.
  • Undeposited Funds (QuickBooks Only): If Undeposited Funds is chosen as your default Clearing Account, all payments will be transferred into that account. From here, you can manually create bank deposits from within QuickBooks under Banking. Since this is the clearing method recommended by QuickBooks, and all QuickBooks accounts come with Undeposited Funds, Commerce Sync Activation for QuickBooks defaults to this setting.
  • Payment-Specific: if you select this option, then each payment type you accept will be tracked in a unique account deposit account (QuickBooks) or asset account (Xero) in your Chart of Accounts. For example, Cash will be transferred into "Cash Payments," Credit Card into "Credit Card Payments," and so on. Selecting this option overrides any selection you have made in the default Clearing Account drop-down.

Additional Information:

  • Undeposited Funds is unique in that it is the only account from which you may make bank deposits from within QuickBooks. If you take advantage of this feature, it is important that you set your Clearing Account to Undeposited Funds and do not select the Payment-Specific option!
  • When using the Payment-Specific option, if you have a pre-existing account in which you prefer to track one or more Payments, rename it to "[Payment Method] Payments" before selecting the Payment-Specific option. For example, rename your preferred Cash account to "Cash Payments." Commerce Sync then uses this account to transfer your cash payments, rather than automatically creating a clearing account on your behalf.

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