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Setup Clearing Account

How to Set Up a Clearing Account

The following walkthrough applies to the Shopify Payments payment gateway (the default Shopify payment gateway for orders done on Shopify via card), but the process should be similar for other platforms.

Note for PayPal:

If you have connected your PayPal account directly to Xero, you do not need to set up a clearing account for the PayPal payment gateway—only the bank account connected to the PayPal account needs to be selected in the Xero Bank Account field.

However, if your PayPal account is not connected to Xero, given you will likely be getting bulk payouts from PayPal (ie. multiple orders in a single payout from PayPal), you will need to set up a PayPal clearing account and link it to your PayPal payment gateway by following the instructions below.

Option 1 - Setup through Post to Xero

Step 1: Set Up the Payment Gateway

  1. Open the Post to Xero app.
  2. Navigate to the Setup - Payouts section.


  1. Click Add Payment Gateway.


  1. Fill in the necessary details in the Payment Gateway pop-up (refer to this guide for more details about Payment Gateway setup).
  2. Under Xero Clearing Account (if applicable), select Create New Clearing Account.
  3. Enter the name of the bank account as "Shopify Clearing Account" or a similar name that reflects its purpose.


  1. Fill in the rest of the required information such as POS Gateway Fee, Xero Fee Account and Xero Fee Tax Rate.


  1. Click Add Payment Gateway at the bottom of the pop-up.
  2. Click Save.


  1. The Clearing Account name you entered will be automatically created in Xero.


Your Payment Gateway is now successfully configured.

Option 2: Setup through Xero and Post to Xero

Step 1 - Create the Clearing Account in Xero

  1. Navigate to Accounting from the top menu.
  2. Select Bank accounts.


  1. Click Add Bank Account.
  2. Choose the bank type of your choice.
  3. Name the bank account as "Shopify Clearing Account" or a similar name that reflects its purpose.
  4. Fill in the rest of the required details according to your preference.


  1. Click on Save & continue.

Your Clearing Account is now successfully created in Xero. You will be using it for your Payment Gateway.


Step 2: Set up the Payment Gateway in Post to Xero

  1. Open the Post to Xero app.
  2. Navigate to the Setup - Payouts section.


  1. Click Add Payment Gateway.


  1. Fill in the necessary details in the Payment Gateway pop-up (refer to this guide for more details about Payment Gateway setup).
  2. Under Xero Clearing Account (if applicable), select the clearing account you created in Step 1.


  1. Fill in the rest of the required information such as POS Gateway Fee, Xero Fee Account and Xero Fee Tax Rate.


  1. Click Add Payment Gateway at the bottom of the pop-up.
  2. Click Save.


Your Payment Gateway is now successfully configured.

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