Inward and Outward Clearing a/c

[Former Member]

Can anyone explain me what is Inward and Outward Clearing a/c as sap point of view ? with examples

[Former Member · Accepted solution]

Hi Navin,

Concept of Clearing account in SAP to ensure the offset entry is posted says example: Goods Receipt entry has been taken place where in Invoice for the goods and  transportation is not accounted that particular transaction. In such situation Clearing account will help to identify such entry and ensure smooth flow of the accounting as well.

Transaction entry is like this:

     Inventory a/c... Dr                     12000

  Goods Clearing A/c......... Cr       10000

   Frieght Inward Clearing A/c... Cr    2000

Once the invoice for goods & Transporation is posted a correspodence entry will be posted into the same clearing and balance will be ZERO

Goods Clearing A/c.....          Dr       10000

Frieght Invward Clearing A/c.. Dr         2000

Vendor A/c.........................  Cr        12000

Let me know if you need an additional clarification.

YJ

[Former Member · Accepted solution]

Can you tell me what is the purpose of Goods Clearing a/c ? why we give this a/c? how is it function?

[Former Member · Accepted solution]

Navin,

Says example, you have created the PO for 100 qtys @ 10 P/Qty from Vendor ONE and goods delivery terms are

Qty      delviery in days    

25          20 Days

25          30 Days

50          40 Days.

After 25th day you have received the goods and accounted to books as Inventory a/c of 25 qty * 10 = 250. This 250 should also show in liability under vendor but invoice is accounting invoice copy is not received by the Finance Team.

Goods Clearing account play a role of Liabilities (Accounts payable) which will be created under the Heads of Current Liabilities and shown as liability until the invoice get accounted. Once the Invoice is account automatically Goods Clearing account will be turned to ZERO from the below entry.

Entry when Goods Receipted:

Inventory A/c.               Dr.     250

Goods Clearing A/c.     Cr.     250

Entry when Invoice Accounted:

Goods Clearing A.c/     Dr.     250

Vendor A/c                  Cr.     250.

Hope you understood.

YJ