NetClose - Clearing Account Considerations
Clearing Accounts
Part of the amortization type mapping is considering whether or not to add a clearing account. In NetClose Amortizations Clearing accounts can be used to indicate if an initial balance entry should be created for the amortization. An initial balance entry is made in either of the following situations: If there is a clearing account on the amortization and the clearing account doesn't match the balance sheet account for that amortization type or if the debit allocation template field is used on an amortization. The initial balance entry for the amortization debits the balance sheet account and credits the clearing account for the full amortization amount.
If there is no clearing account listed in the account mapping, the first journal entry will the amortization entry and no initial balance entry will be made.
Create Amortization from Transactions
Adding future amortizations to a clearing account makes creating amortization from transactions simple. Leaving amortizations that need to be capitalized in a clearing account allows you to filter results by that account and have NetClose create amortizations directly from the account.