A reconciliation account is a G/L account that can’t be posted directly. Instead, it receives postings from subsidiary ledgers in real time, such as AP (Accounts Payable) or AR (Accounts Receivable).
When you set up an AP/AR account, you have to define which will be the corresponding G/L account to be posted automatically.
An open item represents a bussiness transaction that is considered incomplete. There’s a need of an additional transaction to achieve completion. An open item, if it can’t be cleared when posting, it will remain open until it can be cleared eventually.
For example, when an incoming invoice is posted the customer item remains open until the payment is received and posted in the same customer account.
Which accounts are open-item managed?
Subledger accounts (client or vendor) are managed on an open item basis.
G/L accounts that have the “Open Item Management” marked in its G/L account master data. Examples: GR/IR clearing account, or Bank clearing account.
A Journal entry is a finnancial document that represents a business transaction posted to accounts.
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