Security Clearing Account
What is the Security Clearing GL Account?
Every AppFolio database includes a list of key GL accounts (the Chart of Accounts) prior to going live with AppFolio that includes a Security Clearing GL account.
This account is not necessarily an income, expense, asset, liability or capital type GL account. Security Clearing is a pass-thru GL account most often used for transferring funds between GL accounts and cash accounts, and refunding tenants.
The clearing account should always be at a zero balance when a transaction or set of transactions that use this account are completed. If you are trying to post something that can not be cleared with a zero balance, this then would not be the correct GL account to use.
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