For some strange reason my A/P clearing account is not clearing.

I have done this on our test data, and found that when a cheque is reversed in bank reconciliation the batch retrieved updates the GL by

DR: Bank
CR: A/P Clearing

This result in the AP clearing a/c left with the Credit Balance and the expense account not being affected.

Question: Shouldn't there be a batch retrieved in the A/P Sub-module?

Looking forward to your response to this one

Hello odel29,

If the BankRec Bank has been set to update the Pending status in Payables, you just have to post the Check Reconciliation in Payables.

This will
DR: A/P Clearing
CR: A/P Control

If you want to reverse the expense for the Vendor, you will need to enter a Credit note or an Adjustment.