In business, the term clear can have many meanings. When applied to invoices, clearing an invoice usually means that the funds have been received and processed by the company. This can happen in a number of ways, such as when a customer pays their bill online or through automatic withdrawal from a bank account.
However, simply because an invoice is cleared doesn't necessarily mean that the customer has paid in full. In some cases, businesses may offer partial payment plans or allow customers to make payments over time. As long as the minimum amount due is paid and processed, the invoice will be considered cleared.
Once an invoice is cleared, it's typically removed from the accounts receivable system and recorded as income on the company's financial statements. This allows businesses to keep track of which invoices have been paid and helps them budget accordingly for future expenses.