Open items are in fact unfinished transactions. For example, a vendor invoice that has not been settled remains in the vendor account until it is paid.
The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero as shown in the illustration below.
When these items are cleared, the system assigns them a clearing document number and the date on which they were cleared. Invoices in a customer account, for example, would then be marked as paid, while items in a bank clearing account would be marked as cleared.
In order for you to clear items from an account, the account must be kept on an open item basis. Customer and vendor accounts are always kept on an open item basis. This lets you monitor your outstanding receivables and payables at any time. The open item management option, however, must be set for general ledger accounts. You would set this option, for example, for bank sub-accounts and clearing accounts in order to be able to track whether the business transactions posted to these accounts are closed yet.
Open item management ensures that all items that have not yet been cleared are available in the system. Only after every open item in a document is cleared can a document be archived.
You can track open items in line item display or document display. In line item display, you can see the last three digits of the clearing document number if you choose the standard line layout variant. You will want to view clearing documents to find out how the open items were cleared.
There are two functions you can choose from to clear open items: Account Clearing and Posting with Clearing. These functions are described in more detail as follows.
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