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Hi,
The very purpose of using Open Item management is to match the Debits and with corresponding
Credits and arrive at the balance with line item wise break up at any point of time.
This matching concept is traditionally used in balance sheet accounts for the purpose of
period/year end closing and carrying over to the next period/year.
PL accounts are closed for the period/year and transferred to arrive Profit/Loss.
Regards
Daran k
| | | ---------------Original Message---------------
From: sadanand kandikonda
Sent: Sunday, October 30, 2011 11:18 PM
Subject: Open Item Management for P/L Accounts
Hi Ravi,
All P/L accounts are nominal accounts they will be closed by
transferring to Income Statement at the end. Whereas,
Balance Sheet accounts their balances should be carried forward to the next
period. Regarding clearing accounts like
outstanding exp accounts i.e current liabilities accounts will be closed by
making payment, that's why only balance sheet
accounts we maintain on open item basis.
I think this might be helpful to you,
Regards,
Sadanand K. |
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