A escrow account payment is a payment that is posted to the general ledger in two stages. You typically use this approach when the payment method is set to Bank and you want to post transactions to a bank account only when the transaction is cleared at the bank. However, it can also be used for a ledger account. In this case, the amounts will be transferred from one ledger account to another ledger account when the posting to the escrow account is processed.

You can create payments with interim invoices from the Accounts payable or Accounts receivable module. Although this article describes how to set up a posting to an accounts receivable escrow account, the steps for accounts payable transactions are similar.

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