Clearing account
In one sentenceA temporary account that amounts pass through between two steps, such as card sales before they reach the bank; its balance should return to zero once the process is complete.
Simply put
Some transactions happen in two stages: you sell by card today, and the money reaches the bank tomorrow less the fee. You record the sale first in a clearing account, then clear it out when the deposit arrives.
A clearing account balance that does not return to zero is a sign of a problem: a deposit that did not arrive, a fee that was not recorded, or an error in the amount.
Worked example
A pharmacy made card sales of 10,000 SAR in one day, and 9,900 SAR reached the bank the next day; the difference is the bank's fee (an assumed amount for illustration).
Card sales recorded in the clearing account (debit)10,000
Deposit received in the bank (credit to the clearing account)9,900
POS fee (credit to the clearing account)100
Clearing account balance: 10,000 − 9,900 − 1000 SAR
Don't confuse it with
Suspense accountA suspense account is used for an amount whose correct account you don't yet know, while a clearing account has a known purpose and is temporary by the nature of the transaction.