Hello Srikanth,
The chart of accounts lists all G/L accounts used by an organization consisting of one or more companies. In the chart of accounts, G/L accounts are structured on the basis of their account number.
Each G/L account in the chart of accounts has the following attributes:
Account number
Description
Account type
Posting block
Open item management
You can manage specific G/L accounts using open item management. Each line item on such a G/L account automatically obtains the status Open and is then managed as an open item. You can clear an open item with an offsetting entry.
A line item and offsetting entry are grouped into the same transaction using an open item reference. By assigning an open item reference to a line item, you can clear the open item again using the same open item reference assigned to the offsetting item. You can also clear multiple line items and offsetting entries. The balance of the line items and offsetting entries must always be zero.
You use open item management when you want to establish for the lines items on a G/L account whether a corresponding offsetting entry has been made.
Open Item Management and Account Types :
For general payables and receivables, open item management is performed in the Accounts Receivable and Accounts Payable sub ledgers. You can therefore only apply open item management to the following account types:
Other Assets
Other Liabilities
Equity
Open Item Management and Line Items from Customer Invoices :
You can only use open item management for line items that are not relevant for any sub ledgers. As line items from customer invoices or credit memos are always posted to the Sales sub ledger, you cannot use open item management for such line items, regardless of whether you have selected the Open Item Management check-box.
Hope this helps you.
Regards,
Harshal