What is
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clearing?
"Clearing" means balancing open items against each other. Invoices and payments or correction invoices (credit notes) are assigned to each other. The remaining open items then form the basis for further work steps, e.g. reminders (debtors) or payment runs (creditors).
Sometimes receivables and payables cancel each other out completely, whereby several invoices can also be assigned to one incoming payment or vice versa. If a residual amount remains on one side, this is referred to as "partial clearing".
You can clear debtors and creditors during batch posting and in banking when you address a subledger account. After a posting, clearing can be carried out or canceled in the open item lists and in the G/L account reconciliation (for G/L account postings).
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