SAP systems, just like any other complex processing system, tend to become bogged down over time when there are a lot of unresolved open items being left unattended to. Proper management of open items can make the accounts system far more readable not to mention aid in faster updating time. More open items mean the system takes longer to process reconciliation and can have quite the detrimental effect on system performance. If anything, having unresolved open-items in the system is a little bit like have a messy desk at work where things get lost in the clutter. Clearing open items is a tedious but necessary task to keep the accounts system running in top gear.
Manual Open Item Clearance
Manual item clearance is time consuming, no doubt, but it’s also very effective at ensuring that only relevant records are dealt with and are essential components of modern WiFi security systems. The basic underlying rule for manual clearance hinges on matching up a number of fields with each other, namely the GL account of the transaction, the company code, the amount and currency of the transaction, and the fiscal year in which the transaction was performed. When these are verified and the record is selected for clearance, the journals would be automatically updated to reflect the new information. Multiple lines can be selected for clearance manually, making the job just slightly less time-consuming, but not noticeably so.
Automated Item Clearance with the BlackLine SAP Connector
The BlackLine SAP connector allows for a different level of automation, one that is more robust than that which comes built-in to the SAP system. It is an easier system to use since it can be managed by the end user without the need for dedicated IT personnel to set up or change the ruleset. It allows for one-to-many and many-to-one mapping making it more flexible than the current built-in SAP system as well. The system is also seamlessly integrated with BlackLine Journal Entry and BlackLine Account Reconciliation, meaning that the referenced data can immediately be used to update these external systems via rule management which end users can undertake themselves. Because of how easy it is to develop rules for the system, any user trained in setting those rules up can benefit from the automated process in order to clear open items.
Flexibility and Functionality of the Automated System
The BlackLine SAP connector allows users to use any number of relevant data points within the system in order to develop its clearance rules. Utilities also allow users to apply simple mathematical functions such as rounding or absolute values to their checks. Since the system is only as infallible as its criteria, there is also the option to set up manual confirmation of selected records instead of simply letting the system go through its paces. At the end of the matching process the records can be directly sent to Journal Entry or Account Reconciliation if needed.
Account Types and Management
Open-item management is a suitable practice for any account that has offsetting entries, but there are situations where an open-item management solution might not be practical. Generally speaking, cash and equity accounts are exceptions to the rule since they don’t work the same way like payables, accruals, receivables, etc. Additionally, accounts that result in auto-reversals can be set up to clear automatically using the BlackLine SAP Connector.
Having open items in any sort of account management system will lead to problems over time. One must appreciate, however, that any company that deals with a large volume of accounts can’t possibly hope to cope with clearing open items manually and so should look into a utility for automated open-item management. Ideally, having staff trained in open-item management with an automated system would lead to a far more efficient company as well as a much more streamlined accounts system. If efficiency is the goal, then having a properly utilized automated open-item management system is worth its weight in gold.