First, ensure you have the proper settings enabled
Select Settings on the left hand nav
Select GL Accounting Customization
Scroll to Clearing Settings
Toggle Clearing Enabled to Yes
Input the Clearing Deduction Defaults
Default Description
Default Deduction Item
Default Clearing Object (Credit Memo/Journal Entry)
If Credit Memo is selected - input the Number of Days to Close Period
If provided, after the number of days, clearing for the previous month will be a journal entry instead of a credit memo
Click Save
You can also have specific deduction reasons post to your clearing account by associating them here
Now, on a deduction line you'll have the option to post to the clearing account instead of selecting a reason and corresponding GL Item
Once selected and the check is pushed to the GL that line will post to the balance sheet clearing account and then display in the Clearing module on the left hand side of Confido
To Clear deductions navigate to the line you want to update and click [->] View
Here you can update the deduction reason and associated gl item, split the deduction or make additional updates
Click Update in GL
This will create either a reversal journal entry or credit memo against the original entry and close it out with the newly selected trade account