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Open Item Clearing in SAP S/4 HANA

Writer's picture: ADHARSH K SADHARSH K S

Open item clearing in SAP S/4 HANA is the process of matching and clearing related debit and credit transactions in an account to indicate that they are settled. Open items are line items in an account that are not yet cleared or offset by a corresponding transaction. Clearing these items ensures the account is reconciled, and the financial records are accurate.

  • Open items are matched Manually or Automatically

  • Clearing creates a clearing document that updates the account balance and closes the related open items.


Pre-requisite


The account must have the Open Item Management indicator activated in its master data. This ensures that transactions are managed as open items.


  • Open item management must be activated when the account is created.

  • Once transactions exist in the account, you cannot activate or deactivate it without performing additional steps, such as zero-balancing the account.


Open Item Clearing

There are two main ways to clear open items :

  • Automatic Open Item clearing

  • Manual Open Item clearing


CASE 1 : Let's consider this example and clear open items automatically with Transaction Code F.13, where a Vendor Invoice (KR) is of 12,000 INR and Vendor Credit Memo (KG) is of 12,000 INR exists with having same "Assignment" field in line item of both documents.


Automatic Open Item clearing


Automatic clearing is a system-driven process where open items are matched and cleared based on pre-defined criteria, reducing manual effort.

  • Clearing routine transactions like payments against invoices.

  • Clearing GR/IR accounts, bank clearing accounts, etc.


Open Item Clearing

Configuration for Automatic Open Item clearing in SAP


STEP 1: Go to Display Document and check the Technical field Name of Text Field


Select the field > Press Function Key "F1" and then click on Technical Field Name Icon and then Copy the Field Name

Open Item Clearing

STEP 2: Prepare Automatic Clearing


Go to Transaction code OB74 or follow below path to configure >>

Open Item Clearing

In this activity, you specify the criteria for grouping an account's open items for automatic clearing. The program clears the open items that are grouped together if their total balance equals zero in local and foreign currency.

You must enter the following standard criteria:

  • Account type

  • Account number or number interval

  • You can also enter a further 5 criteria


Open Item Clearing

To Clear Vendor Open Items - Automatically


Go to T Code F.13 > Provide Parameters, Remove Test Run Tick and Execute.

Open Item Clearing

Below is the Clearing Document Generated with Document Number 100000033

Open Item Clearing

Manual Open Item Clearing


Manual clearing involves selecting open items and clearing them directly in the system. This is typically used when automatic clearing is not possible or when specific items need to be reviewed or matched by a user.


Access the relevant transaction for manual clearing:

  • F-32 : Customer account clearing.

  • F-44 : Vendor account clearing.

  • F-03 : Clearing in general ledger accounts


CASE 2 : Let's consider this example and clear open items manually, with Transaction Code F-44, where a Vendor Invoice (KR) is of 11,000 INR and Vendor Credit Memo (KG) is of 11,000 INR and the both document header having the Reference field as "TEST"

Open Item Clearing

Configuration for Manual Open Item clearing in SAP


To add a selection criteria of Document Header - "Reference" field for customer/ Vendor/ GL Account clearing screen.


STEP 1: Go to Document display and click on Document header > then select the Reference field and click on Technical field > copy the field name

Open Item Clearing

STEP 2 : Go to T Code O7F1 click on Insert after and provide field name > SAVE.

To Clear Vendor Open Items - Manually


Go to T Code F-44 > provide the Vendor, Company Code and select Reference from the Additional selection criteria then click on Process Open Items

Open Item Clearing

Select the open items to clear and click on POST

Open Item Clearing

Below is the Clearing Document Generated with Document Number 100000034

Open Item Clearing

Similarly, you can clear Customer Open items with T code F-32 and Clear GL Account Items with T Code F-03. In SAP S/4HANA, the process of open item clearing whether automated or manual plays a vital role in maintaining accurate financial records and ensuring streamlined operations. While automatic clearing enhances efficiency by handling high-volume transactions with predefined criteria, manual clearing provides the flexibility to address unique or exceptional cases that require human judgment.







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