Open items and line items

[Former Member]

Hi Gurus,

Can anyone explain me regarding what is opening item management and what is use and to which type of accounts we will give opening item management check box. Please give me an example.

Thanks and Regards

Balu

[Former Member]

Here is the SAP help text on the field 'Open Item Management'. Should answer your query!

Indicator: Open item management?

Determines that open items are managed for this account.

Use

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.

Procedure

Set up accounts with open item management if offsetting entries are to be assigned to the postings made to these accounts. Postings to these accounts represent incomplete transactions.

Example:

A goods receipt/invoice receipt (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.

Set up accounts without open item management if no offsetting entry is to be made against a posting to this account.

Examples

Accounts that are managed on an open item basis include:

Clearing accounts:

Bank clearing account

Payroll clearing account

Cash discount clearing account

GR/IR clearing account

Accounts that are not managed on an open item basis:

Bank accounts

Tax accounts

Raw material accounts

Reconciliation accounts

These are managed implicitly using the subledger open item function.

Profit and loss accounts

Materials Management (MM) accounts posted with a posting key that has account type 'M'

[Former Member]

You will maintain an accuont as Open Item managed, you have the details of line item posted available till they are cleared implying that you can match Debits with Credits and track too.

When you compare this with the non open Item managed, they will only give you Debit and credit and you wil lnot be any time can related the credits to Debits or vice versa.

When you want only one account as miscellaneous expenses payable you can open this with open item managed. Juast take the examples of Electricty exp payable at the year end/ Income tax/Dividend tax/sales tax payable/ etc., All these can be open item managed in GL Misc exp payable instead of opening so many GL accounts.

In short we can say a GL a/c when managed as a open item managed, it resembles with Vendor or customers account with out a reconciliation account.

when you do Banck Reconciliation in SAP you may be needing couple of GL accounts on open item manged.

When you want to see the details of line items in a G L account then you need to check the line items in GL master data.

Hope you have understood.

Reward points if useful.

sarma

[Former Member]

Hi

http://help.sap.com/saphelp_470/helpdata/en/c7/a89dd243dd11d182b30000e829fbfe/frameset.htm

Ravi

[Former Member]

Hi,

Open item management will be used for provisinal gl accounts and it should be balance sheet accounts. for example salaries payable, TDS payable etc

sateesh