Open item managment is set to B/S accounts

Question

Hi Guru's
I saw open item managment is set to B/S accounts only. Do we set for P&L accounts also? If so examples please.
Regards
Odaiah Pelley

Answer 1

Hi ,
OPEN ITEM MANAGMENT-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.
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'
Hope this will help you
Regards