Alex goes over the SAP documentation to get to know the possibilities for enabling open item management for G/L accounts. This is what she finds:
You can perform clearing for accounts that are open item managed. You control this on the G/L account level, specifically in the company code settings of the G/L account. In certain cases, you can also activate open item management for specific ledger groups. This way, you can adhere to different accounting standard requirements, such as for provision amounts. You can only use one type of open item management at a time for a G/L account.
Note
There is a third type of open item management called extended open item management. This type is allowed only for goods receipt/invoice receipt (GR/IR) clearing accounts. Journal entries that are managed using this type of open item management can have more than 999 line items, limited only to 9999 line items in the invoice document.
Alex takes note of the following:
Activating Open Item Management in G/L accounts:
You generally activate open item management during the G/L account's initial setup. This can be done using the Manage G/L Account Master Data app.
To activate open item management, you select the Open Item Management check-box in the company code-specific settings of the G/L account. This setting ensures that transactions posted to the account are marked as open or cleared.
Ledger-Specific Settings for Open Item Management - Clearing Specific to Ledger Groups
In SAP S/4HANA systems, you can configure open item management to be specific to ledger groups. This is particularly relevant when performing parallel accounting using the ledger approach. To set the Clearing Specific to Ledger Groups indicator, ensure that the indicator is also set for the G/L account. This configuration allows the account to be managed on an open-item basis and enables ledger group-specific entries.
Limitations for Modifying Existing Accounts:
Existing Postings
One significant limitation is that you cannot activate or deactivate open item management for a G/L account if there are existing postings in the account. This is because the system requires consistency in how transactions are managed and cleared. If you need to change the open item management setting for an account with existing postings, you must first clear all open items. This can be a time-consuming process and may require coordination with other departments to ensure all transactions are appropriately handled.
Account Types
Certain G/L accounts cannot be managed on an open-item basis. These include bank accounts, tax accounts (except for deferred tax), raw material accounts, reconciliation accounts, and material stock accounts. The system blocks the activation of open-item management for these accounts.
Note
In SAP S/4HANA, reconciliation accounts are not managed on an open-item basis. Reconciliation accounts serve as intermediary accounts that link sub-ledger accounts (such as customer, vendor, and asset accounts) to the general ledger. Open-item management is handled at the sub-ledger level, where individual transactions are tracked and cleared.
Alex bookmarks the link to the help portal with all the details on the topic: Defining Open Item Management