on 03-12-2009 3:48 PM
Let me know what is the use of "Open Item Management" in GL creation.
I read abt it by clicking F1. But i didn't got clarity. I just came to know that it should be used for balance sheet items. That too there are many balancesheet items like bank accounts, raw material account for which it should not be used...
So please clarify it on your own words i.e. what is "Open Item management" & where it should be used.... ?
Hi,
Open Item management is mainly required for clearing account where you want to check whether there is as offseting posting for a given business transaction. you can display the open and cleared items sparately in open item management.
example: bank clearing account
when a posting is made to this account initially it will be an open item and when there is a offsetting posting made the initial item will be cleared.
so see these open and cleared postings we need Open item management.
hope it explains..
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HI Deepak,
Open Item management handles Open Items.
Example.
1. You have Invoice. 1.1.09
2. paid the Invoice after some time. 15.01.09
3. If you run the Fbl1n on 2.1.09 then above invoice is showing under open Item list.
because Invoice is not paid because it open for payment (or open for clearing)
If you set IOM in GL account then above is possible.
Reg
Madhu M
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So what will be consequence if i do not keep the open item clicked for any of the account ?
In what area such as presentation or dislpay of GL a/c, entry in GL account, etc...
Now i am trying to change ICICI bank (recpt) account from non OIM to OIM by checking OIM option...
Its is giving error as: Account balance = 0 but open items exist in the account
Let me know why ?
Edited by: Deepak Agrawal on Mar 13, 2009 12:02 PM
Hello,
Following is the F1 help for your reference:
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'
Regards,
Ravi
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Hi Deepak,
Open item mangement is nothing but the payment due for the period.
1.you enter the Inovice in Vendors A/c.
2. Vendor payment due date is Next month.
3. Invoice show it is open line item.
4. It is still open item untill You are not clear the amount
For any open line item while creating gl a/c need to activate the open line item check box in
control tab.Open item used for vendor ,customer, gl account where clearing is required.
Regards
Sudharsan.R
HI,
Hope you are clear with the above details. I will try to explain you in a simple way.
Hope you had Accounting Knowledge right.
For Example.
We have Purchased Raw Material from a vendor.
So In our vendor account against to purchase we have debited amount.
This amount with the information is all are considered as open item.
Once the amount has been paid the amount entry will be linked to the particular open line item the open line item will be cleared.
In simple outstanding to the vendor with each invoice details is consider as open line item.
Warm REgardss
Shiv
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Also Check out this program thru SA38 - "RFSEPA02"
If u want to change the indicator in between
Thank You
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I think open item management will not have accounting impact. Its a question of discipline wherein u can setoff two matching open entries and then arrive at unreconciled open items in an account
For eg: In an account u have foll line items
Dr 100
Dr 200
Dr 300
Cr 200
Cr 300
Closing balance Dr 100. Now if you manage this account on open item basis and then clear the matching set off entries, then at period end u will know the open item to be reconciled is Dr 100.
Thank You,
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Hi,
open item management denotes the GL which need to be clear through clearing entry. The objective of creating open item is to settle the accounts through offsetting entry . If any amount balance in the open items have to be traced and why it is pending have to analysed . These open items are incomplete line items which need to be cleared.
The open items are a managed at the time of creation of Gl accounts. Once you ahve made some entry to the Gl with out having open item managed , you cannot change it to open item unless the balance of that particular gl will become zero.
with regards to vendor and customer all the reconciliation gls are open items gls .
Regards,
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Hi
A few GL accounts can be managed on an open item basis in SAP. That is every entry in the account would be stored as a Open item, unless the user selects and matches it with an other entry.
This can be used for bank accounts (reconciliation), inter unit accounts, deposit accounts...
For eg: When a transfer funds to a branch account,
Inter unit branch account Dr
Bank account Cr
When i receive back funds
Bank account Dr
Inter unit branch account Cr
The second receipt entry would be adjusted/cleared against 1st entry in SAP thru the 'Account clear' functionality or when making the receipt entry itself.
So in a month if you make n number of tranfers and corresponding receipts, then thru open item mgt u can track individually and set off matching items, so at period end, u will no what are the open items
Thank You,
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