Term Deposits and electronic clearing account

[berenice]

Hi MYOB uses

I used the term deposit that was already set up in Myob.    I entered $10,000 through receive money and allocated it to term deposit account.  The term depoist has doubled, its now $20,000.  My bank account has been reconciled.  The accountant wants me to adjust it through an electronic clearing account.  I don't use any electronic payments.  I do not know how to do it and he doesn't return my calls.  Can anyone please explain to me how to do it?

kindly  berenice

[Steven_M]

Hi @berenice

Welcome to the MYOB Community Forum, I hope you find it a wealth of knowledge. If you do have enquires don't hesitate to post them so the MYOB Community can assist.

The electronic clearning account is normally a holidng account. It is generally used to hold the payments that you have in the Banking>>Prepare Electronic Payments window. When you record your transactions, say a Banking>>Spend Money transaction and you select to Group it with Electronic Payments the transaction will be placed into that holding account i.e. the electronic clearning account. The transaction will also appear in the Banking>>Prepare Electronic Payments window ready to be ticked off and processed. When you do this it will remove the balance of those transactions from the electronic clearning account to the bank account.  

Unless you wanted to process that transaction electronically and filter it through another bank account you wouldn't normally use that electronic clearning account, so I'm a little surprised that the accountant would suggest that. If an account had doubled i.e like a term deposit you would normally do a journal entry via Accounts>>Record Journal entry. You would want to debit that term depost account to increase that account balance and generally offset this by an income or another similar sort of account. I would suggest going back to your accountant and ask why they want to use that electronic clearning account and how they wish to you use it. 

For more information into electronic payments take a look at Help Article: Electornic Payments