Outstanding Items (OPOS) label in the Financial accounting Claims or liabilities from invoices that have not yet been fully settled. As long as an invoice has not been paid or offset, it remains in the system as an open item.
Basics
In accounting, open items typically arise from issued or received invoices. An item is only closed when a payment is made or an entry is made to offset it.
open items are generally within the scope of double-entry bookkeeping managed and are part of the ongoing accounting.
Classification in accounting
OPOS management is one of the fundamental functions of modern accounting systems. It serves to provide a structured overview of receivables and payables and supports proper documentation of business transactions.
Open items arise in particular in connection with invoices for supplies and services.
Classification within the financial accounting system
The management of open items allows the current status of receivables and payables to be tracked at any time.
Typical processes surrounding open items
- Recording of outgoing invoices
- Incoming invoice capture
- Payment allocation for bank transactions
- Settlement of accounts by payment or set-off
- Monitoring of outstanding receivables
Many accounting systems offer special open item lists to clearly display outstanding invoices.
Typical procedure
- Recording an invoice in accounting
- Creation of an open item
- Payment received or payment made
- Allocation of payment to invoice
- Settlement of outstanding item
Practical relevance
The overview of open items is an important basis for entrepreneurial decisions. It helps to monitor outstanding receivables and to better manage payment flows within the company.
Furthermore, OPOS administration supports processes such as dunning or liquidity planning.
Typical sources of error
- Missing allocation of payments to invoices
- Underlying un-recouped items
- Double entries on payment receipts
FAQ
What does OPOS mean?
OPOS is the abbreviation for open items and refers to unsettled invoices in accounting.
Where are open items managed?
Open items are typically managed in accounts receivable or accounts payable.
Conclusion
Open items are a central component of financial accounting. They provide a transparent overview of outstanding receivables and payables and support the management of payment processes.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
