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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'