Open item

Open item
See also

Open item - it is a manuscript found in an accounting ledger that keeps track of a particular variety of financial activity over a given period of time. It is used in Integrated management system; this basis stand for that you are willing to view item-by-item line items that make up the balance an account and clear individual line items with compensating the components so that you can have a preview on open and cleared line items [1].

Open item in general use

Open item basis indicates that you are able to have a look at every individual line items that make up the balance of the account and clear individual line items with offsetting line items so that you can view both open and cleared line items [2].

Open item management

Open item management is one of the reconciliation function. You are allowed to display the open and cleared items and amounts in an account by open item management. If the compensating entry is made for each of the line items posted in the account (the account should be reconciled and cleared against another account). Clearing accounts such as the GR/IR (goods-receipt/invoice-receipt) account are good examples of the use of open item management. In generally it is used in the balance sheet [3].

In other words, open item management means that a line item needs to be cleared against another open item. At a particular circumstance, the balance of an account is the sum of all open items of that account. Generally, you make these settings in the G/L Master for all clearing accounts, such as a Goods receipts and Invoice receipts (GR IR) account, customer account, vendor account, or bank G/L account, or all accounts except the main bank account. Open item managed accounts eternally have line item management. You can switch open item management on and off through transaction code FS00 [4].

The essence of Open Item Indicator

The Open Item Indicator is frequently selected for General Ledger accounts that require items to be cleared. These accounts need to be cleared at month-end [5]

References

Footnotes

  1. P. Jones, J. Burger 2011, p. 107
  2. P. Jones, J. Burger 2011, p. 107
  3. P. Jones, J. Burger 2011, p. 107
  4. S.N. Padhi 2009, p. 24
  5. S. Finke 2006, p. 23

Author: Klaudia Wojtas