What is open item management and only banlances in local currency ?
for which gl accounts v select open item management and only balances in local currency
Pls explain urgent
1. Only Balances in Local Currency:
Indicates that balances are updated only in local currency when users post items to this account.
Use: You would set this indicator for accounts in which you do not want the system to update transaction figures separately by currency.
It is required to set theis indicator in:
1. cash discount clearing accounts
2. GR/IR clearing accounts.
It cannot be set in reconciliation accounts for customers or vendors. Setting it in all other instances is optional.
Open item management:
Determines that open items are managed for this account.
Explanation: Items posted to accounts managed on an open item basis are marked as open or cleared. The balance of these accounts is always equal to the balance of the open items.
Procedure: Set up accounts with open item management if offsetting entries are to be assigned to the postings made to these accounts. Postings to these accounts represent incomplete transactions.
A goods receipt/invoice receipt (GR/IR) clearing account should be managed on an open item basis so that you can check at any time whether invoices have been received for the goods received for an order.
Set up accounts without open item management if no offsetting entry is to be made against a posting to this account.
Accounts that are managed on an open item basis include:
Bank clearing account
Payroll clearing account
Cash discount clearing account
GR/IR clearing account
Accounts that are not managed on an open item basis:
Raw material accounts
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