My ledger is set up with clearing accounts. WHEN RECEIPTS ARE POSTED FROM THE INVENTORY MODULE AND RETRIEVE IN THE GL, INVENTORY A/C IS DEBITED AND THE AP-IC CLEARING A/C IS CREDITED.
HOW IS THIS CLEARING A/C CLEARED? WHAT OTHER ACCOUNT IS IS SUPPOSED TO BE LINKED TO?

Hi,
Your setup is correct and you have identified a known weakness of using Inventory without the Purchase Orders for Adagio module. The clearing account (accrued liability) for your receipts is supposed to clear assuming all receipts in Inventory are ultimately entered in Payables for the identical amounts. When you you enter your invoice in AP for an Inventory purchase, you should be debiting the AP- IC Clearing.

Assuming you are doing this, there is still no way to effectively reconcile and determine what or where discrepancies in the clearing account came from. As such this account continues to grow or shrink with hope that eventually it will clear.

Differences can be caused by timing differences and/or data entry errors, but normally the account balance (at month end) would be a credit balance representing amounts for receipts that have received into inventory (as packing slips) but not yet received or entered as invoices into AP.

If the amount in the clearing account cannot be justified by recent receipts, then some analysis of Inventory accounts and cost of sales would be necessary to see whether journal entries are required to approximate the accrued liabilities represented by recent receipts.

If you really want to get control of your receipts and Inventory processing, you should consider Purchase Orders for Adagio.

Brian

OK