The Clearing Account is a fundamental tool for non-profits that simplifies bank reconciliation by ensuring your internal Aplos register matches the lump-sum deposits on your bank statement.

The Problem: Mismatched Deposits

In Aplos, every income source (e.g., an A/R payment, a contribution batch) is recorded as a separate line item in your checking account register. If you deposit multiple checks and batches at once, your bank statement will show one single total deposit, while your Aplos register shows several smaller entries. This mismatch makes reconciling your accounts frustrating.

The Solution: Setting Up the Clearing Account

A Clearing Account acts as an intermediary asset register that temporarily holds all incoming detailed transactions until they are physically grouped and deposited.

Setting Up Your Clearing Account

1. Create the Account: Navigate to your Accounts List in Aplos.

2. Asset Section: Create a new account in the Asset section.

3. Name & Type: Name it "Funds Clearing Account" (or "Undeposited Funds") and ensure it is marked as a "register" type account.

How It Works (The Example)

1. Receive to Clearing: When you receive funds (e.g., a $250 A/R payment and a $1,000 contribution batch), you post both transactions into the Clearing Account, not your Checking Account.

2. Deposit the Lump Sum: When you go to the bank and deposit the total of $1,250, you record a single deposit (transfer) in your Aplos Checking Account for $1,250, using the Clearing Account as the source.

This transfer reduces the Clearing Account balance to zero and places the single $1,250 deposit into Checking, perfectly aligning your records with your bank statement.

Scenarios Where a Clearing Account is Essential

Using a Clearing Account is necessary whenever a single physical bank deposit is composed of multiple transaction types from your Aplos records. Below are a few common scenarios you might need a clearing account for.

1. Grouping Multiple Accounts Receivable (A/R) Payments

Your A/R feature records payments from grants, facility rentals, or training fees as separate payments. When you receive and deposit multiple A/R checks and cash at once, the Clearing Account is used to hold the detailed payments and then transfer the single lump sum total that appears on your bank statement.

2. Mixed Daily/Weekly Deposits

This is the most common use. A single deposit contains a mixture of funds from various sources, such as cash offerings, mailed contribution checks, and a payment for an outstanding A/R invoice. By directing all these disparate transactions into the Clearing Account first, you can ensure the single, combined deposit total hits your Checking Account register correctly.

3. Handling Integrated Online Giving Settlements

If you use a donor management tool that integrates with Aplos, that system often sends each individual donation to Aplos. However, your bank delivers the money as a single, daily/weekly settlement from the payment processor. The Clearing Account receives the individual entries, allowing you to manually group them to match the exact total settlement amount shown on the bank statement before transferring that batch to the Checking Account.

A Note on the Clearing Account Balance

If your Clearing Account shows a balance, it is not an error. It simply represents money that has been formally recorded into your accounting system (attributed to the correct date/period) but has not yet been physically deposited into the bank. It is essentially money "on hand."