Register Login
Python Photoshop SAP Java PHP Android C++ Hadoop Oracle Interview Questions Articles Other

Open Line Item Management and Clearing Open Line Items

Updated May 18, 2018

Open item management is further reconciliation function. OIM allows you to display the open and cleared items and amounts in an account. OIM should be used if an offsetting entry is made for every line item posted in the account. 

The a/c is reconciled and cleared against another account. Ex. Salary clearing account and GR/IR Clearing account.

Comments

  • 22 May 2009 3:19 pm Guest Helpful Answer
    Open items arise from every posting transaction in a contract account and reflect unfinished business transactions. For example, an invoice item that has not yet been paid is recorded as an open item in the contract account until it is paid and cleared. The facility to manage line items on an open item basis enables you to check which receivables and payables are outstanding. In Contract Accounts Receivable and Payable, your accounts must be managed on an open item basis in order to be able to use most procedures (such as dunning or payment).

  • 07 Jan 2013 5:28 am Guest Helpful Answer
    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.
  • 27 Jan 2013 3:22 pm Guest Helpful Answer
    when ever they is an account for clearing.we need activate open time management and line item display.By activating open item management we can know what are clearing,open items.open item management should be activated for salary clearing accounts,GR/IR clearing accounts.It should be a balance sheet account.
Recommended Posts:
×