Using a clearing account for payment processors

A clearing account is a balance-sheet account that represents money sitting at the processor. Sales go in, fees and refunds come out, payouts move the rest to the bank. At any time its balance should equal what the processor says you hold.

How PayoutSplit uses it

• PayPal keeps a balance, so each withdrawal entry books the change in balance to “PayPal Clearing”.
• Holds, reserves and currency conversions go to clearing rather than income or expense.
• Activity not in a payout yet can be booked to clearing (tick “Include activity not in a payout yet”) — the later payout clears it.
• When a payout doesn't add up to its transactions (an export that cuts a payout in half), the difference goes to clearing and you get a warning.

Rename it under “Your account names and codes” — for example to your existing “Stripe Balance” account.

Last reviewed 2026-10-27. Menu names can differ between software versions.