GL Open Item Initialization

If you change a standard GL account to an Open Item GL account and the account already has transactions posted to it, you can use GL Open Item Initialization (25.15.2.12) to reconcile the transactions automatically. This function accommodates situations where there was prior uncertainty over which accounts required the use of GL open items.

When you convert a standard account to a GL open item account, all existing transactions on the account are assigned the default allocation value of Allocate Later.

If a standard account was created for use in the operational modules and specified in, for example, Domain/Account Control (36.9.24), Product Line Maintenance (1.2.1), Purchasing Account Maintenance (1.2.5), or Inventory Account Maintenance (1.2.13), the system prevents you from changing the standard account to a GL open item account.

When you run GL Open Item Initialization (25.15.2.12), the system gathers all transactions for the specified converted open items account, reconciles any transactions that can be reconciled, and creates a closing and an opening transaction for the account.

The closing transaction is automatically assigned the allocation key you specify in GL Open Item Initialization (25.15.2.12). The same key is also assigned to all unallocated transactions on the account, linking the historical transactions in one step. This prevents the older unmatched transactions on the account from being continuously listed as unallocated in GL Open Item Reconciliation (25.15.2.13) or in the GL Open Item report (25.15.1.8).

Specify a start date to search for transactions on GL open item accounts that were converted from standard accounts. The start date is mandatory.

Specify an end date to search for transactions on GL open item accounts that were converted from standard accounts. The end date is mandatory.

Specify one or more active GL open item accounts, previously converted from standard accounts, for which to create a reconciled initial open item. This field is mandatory.

Specify a currency to search for open items denominated in this currency. This field is mandatory.

Important: The following five fields are used to define the posting details for the closing and opening postings created for the initial open item:

Specify the daybook to which you want to post the reconciled initial open item. This field is mandatory.

This field displays the layer to which the daybook belongs.

Specify the GL calendar year and GL period in which to create the initial open item. These fields are mandatory. The defaults are the GL calendar year and GL period of the current system date.

Specify the posting date that the system must use when posting the reconciled initial open item. This field is mandatory. The default is the current system date.

Enter the allocation key to assign to the new initial open item. This field is mandatory.

Transactions with the following amounts are posted to standard account 8008.


Posting Date	BC Debit	BC Credit
06/01/2014	375
06/11/2014	425
6/25/2014		1500
Total	800	1500

The outstanding balance on the account is 700 Cr.

Account 8008 is later converted to an open items account using GL Account Modify (25.3.13.2). The transactions on the account are automatically assigned the allocation status Allocation Later.


Posting Date	Allocation	Allocation Key	BC Debit	BC Credit
06/01/2014	Allocate Later	N/A	375
06/11/2014	Allocate Later	N/A	425
6/25/2014	Allocate Later	N/A		1500
Total			800	1500

You run GL Open Item Initialization (25.15.2.12) to create an initial open item for all transactions on the account. You specify the allocation key Init001. As a result, the following postings are created on the daybook you specified. The first line is the closing posting and the second line is the opening posting.


Account	Allocation	Allocation Key	BC Debit	BC Credit
8008	New Open Item	Init001	700
8008	Allocate Later	N/A		700

Journal Entry View, Initial Open Item Posting shows the journal entry posting created.

The original transactions on account 8008 are updated to reflect that they are now linked to open item Init001. As a result, allocation key Init001 is closed, and all original transactions are reconciled with the closing transaction. You can then reconcile any new transactions on the account with the opening transaction.


Posting Date	Allocation	Allocation Key	BC Debit	BC Credit
06/01/2010	Link to Open Item	Init001	375
06/11/2010	Link to Open Item	Init001	425
6/25/2010	Link to Open Item	Init001		1500

Journal Entry View (25.13.1.3) shows the updated grid from the original journal entry posting on account 8008 for 425 USD debit, showing that the transaction is now linked to allocation key Init001.