What is a clearing account?

A clearing account is a separate current asset account in Xero that is used to reconcile payments applied to invoices and payments received into your bank account.

When you connect Xero invoices to Zeller via the Zeller payment service connection, we automatically create a clearing account in Xero for you. When a customer pays a Xero invoice using Zeller’s payment service, you will see two line items in your clearing account related to the payment

  1. The total amount paid as a credit.

  2. Zeller’s processing fees as a debit.

This will mean that the balance in your clearing account matches up with the settlement amount that you receive from Zeller.

It is important to keep this account active so that Zeller can automatically record and reconcile your Xero invoice payments. Archiving or deleting your clearing account will cause errors with the payment service connection.

If you have any further questions regarding our Xero integrations, please get in touch with our Support team.