BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When an account is required for clearing
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When an account is used as a reconciliation account
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When an account is set up as a cost element
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When an account has a zero balance
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Detailed explanation-1: -It can be activated or deactivated if the general ledger accounts have a zero balance. Open item management can be used for all the general ledger account created in SAP but you need to have open item management functionality for specific general ledger accounts like; Bank Clearing Account. GR/IR Clearing Account.
Detailed explanation-2: -Open item management 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).
Detailed explanation-3: -You have to define open item management for G/L accounts in the master record. You would set this option, for example, for bank subaccounts and clearing accounts in order to be able to track whether the business transactions posted to these accounts are closed yet.
Detailed explanation-4: -Open item management is relevant for balance sheet accounts. Journal entry line items posted to a G/L account that is managed on an open item basis are initially marked as open. Open postings to these accounts represent incomplete transactions. Once clearing has taken place, the items are marked as cleared.