Please refer help.sap.com
If you set the "Open item management" indicator in the master record for an account, the line items in this account is marked as open or cleared.The balance of an account with open item management is equal to the balance of the open items. General ledger accounts are kept with open item management if you need to check whether there is an offsetting posting for a given business transaction.You should use open item management for bank clearing accounts, clearing accounts for goods receipt/invoice receipt, and salary clearing accounts.Bank accounts, however, do not use open item management.If you subsequently define open item management for a G/L account, this entry only applies to the items which are posted afterwards. At the date of the change, the account must display a zero balance.Also, when canceling this indicator, the balance must be zero. You therefore have to clear the remaining open items before making the change in the master record.
Open item management
Specification that the items in an account must be cleared by other items in the account. The sum of items involved in the clearing procedure must be zero. The account balance is therefore always equal to the sum of the open items. This will be ticked for all clearing accounts or where the client wants clearing of line items.
OIM is specification that items in an account have to be cleared by other items in the account. The total of the items involved in the clearing transaction must be zero. The account balance is therefore always the total of the open items
Customer and vendor accounts are always managed in this way. This allows you to monitor your outstanding receivables and payables at any time. You have to define open item management for G/L accounts in the master record.
You would set this option, for example, for bank subaccounts and clearing accounts in order to be able to track whether the business transactions posted to these accounts are closed yet.
Open item manage determines that this open items are managed for this account. Items posted to accounts managed on an open item basis are marked as open or cleared. The balance of these accounts is always equal to the balance of the open items.
Ex. GR/IR clearing account should be managed on an open item basis so that you can check at any time whether invoices have been received for the goods received for an order.
General ledger accounts are kept with open item management if you need to check whether
there is an offsetting posting for a given business transaction.
Open item management would usually be set for the following accounts:
1> Cheque clearing accounts (bank clearing accounts)
2> Goods receipt (GR) / Invoice receipt (IR) clearing accounts (to check at any time whether invoices have been received for the goods received for an order).
3> Salary clearing accounts
However it is also recommended for the purpose of reconciliation of bank accounts with actual physical balance to keep bank accounts as open item managed which would give the following positive outcomes:
- Accounts can be reconciled (and signed off on) at each month end;
- T Code F-03 could be used for clearing of open items
- Easy tracking and correction of errors via F-03;
- Large volume of transactions can be easily handled and there are no piling up of transactions on the bank accounts for the period of reconciliation
‘Clearing’ in SAP refers to squaring-off open debit entries with that of open credit entries.
Clearing is allowed in GL accounts maintained on an ‘open item’ basis and in all customer/vendor
accounts. The clearing can either be manual or automatic. In the case of manual clearing, you
will view the open items and select the matching items for clearing. In the case of automatic
clearing, a program determines what items need to be cleared based on certain pre-determined
The chart of accounts lists all G/L accounts used by an organization consisting of one or more companies. In the chart of accounts, G/L accounts are structured on the basis of their account number.
Each G/L account in the chart of accounts has the following attributes:
Open item management
You can manage specific G/L accounts using open item management. Each line item on such a G/L account automatically obtains the status Open and is then managed as an open item. You can clear an open item with an offsetting entry.
A line item and offsetting entry are grouped into the same transaction using an open item reference. By assigning an open item reference to a line item, you can clear the open item again using the same open item reference assigned to the offsetting item. You can also clear multiple line items and offsetting entries. The balance of the line items and offsetting entries must always be zero.
You use open item management when you want to establish for the lines items on a G/L account whether a corresponding offsetting entry has been made.
Open Item Management and Account Types :
For general payables and receivables, open item management is performed in the Accounts Receivable and Accounts Payable sub ledgers. You can therefore only apply open item management to the following account types:
Open Item Management and Line Items from Customer Invoices :
You can only use open item management for line items that are not relevant for any sub ledgers. As line items from customer invoices or credit memos are always posted to the Sales sub ledger, you cannot use open item management for such line items, regardless of whether you have selected the Open Item Management check-box.
Hope this helps you.
Mainly used for GR/IR, Bank clearing, customer and vendor accounts. This allows you to monitor your outstanding receivables and payables at any time.
You have to set the option in the gl master record. The items in this account have to be cleared by other items in the account.Means that you have offsetting account.
The total of the items involved in the clearing transaction must be zero. The account balance is therefore always the total of the open items.