Some open item queries

Question

hi,
i read about open item management and now have few queries.
1) account meant for open item manged only for clearing account?
2) i read this 'when you activate open item field in the Gl it means those accounts need to be cleared at the month end'.
my question is for clearing account then i quite agree but what about customer and vendor account in point 3? how to clear at month end?
3) i read the follows. what does it mean 'automatically set for customer and vendor account?
You can only clear open items that are posted to accounts that
are managed on an open item basis. Open item management is
automatically set for customer and vendor accounts. For G/l
accounts, however, you have to set the open item management
option in their master record yourself. Open item management
would usually be set for the following G/l accou
thanks

Answer 1

> 1) account meant for open item manged only for clearing account?
<b>Not necessarily, Any account, where you expect the balance to be zero at some point of time or those accounts, where you expect contra entries. i.e for every debit entry, if you expect a credit entry with equal amount, this account can qualify for open item managed.  The open item management, is meant for better managing of accounts. GR/IR account is a classic example. First when goods arrive, the GR is credited, later when invoice come for the same goods receipt, this account gets debit.</b>
> 2) i read this 'when you activate open item field in the GL it means those accounts need to be cleared at the month end'.
<b>Not mandatory, Nevertheless, it can be a good practise.</b>
> my question is for clearing account then i quite  agree but what about customer and vendor account in point 3? how to clear at month end?
Vendor and customer account usually gets cleared automatically when payment is recieved or paid. If not done at the time of receipt, this may be done at period end. For vendors and customer who has not been paid or received, you cannot clear those account. The open items will remain and should be so.
> 3) i read the follows. what does it mean 'automatically set for customer and vendor account?
>
> You can only clear open items that are posted to accounts that are managed on an open item basis. Open item management is  automatically set for customer and vendor accounts.
<b>Vendor and customer accounts are sub-ledgers, They are not main GL. An account opened in these sub ledgers, automatically come with the feature or open item managed. Because, it is always expected the their accounts will be brought to zero, as soon a particular transaction is completed.</b>
> For G/l  accounts, however, you have to set the open item management  option in their master record yourself. Open item management  would usually be set for the following G/l account.
<b>See comments for the first item</b>