When it comes to a transparent insight into all receivables and liabilities as well as the active liquidity management of a company, OPOS play a central role. They ensure that open invoices can be tracked at all times and that no payment is lost sight of. The following article explains the importance of OPOStheir definition, explains how they work and shows why they are essential for the financial stability of a company.

The most important facts in brief:

• Definition: OPOS = Open items - overview of all outstanding receivables (debtors) and payables (creditors).
• Function: Transparent overview of payments, due dates and dunning status.
• Significance: OPOS show at an early stage when money is coming in or going out and where bottlenecks and are therefore important for Cash position and planning.
• Advantages: Prioritization of overdue items, clarity, improved financial planning, use of discounts, structured dunning process, fewer defaults, predictable cash flow

Table of contents:

1. The meaning of OPOS - definition & explanation
2. What is an OPOS list?
3. Open item accounting: example with table
4. OPOS as a decisive lever for your company and Cash position
5. Tips for the correct implementation of OPOS: How to implement your list efficiently
6. The importance of OPOS in practice: common mistakes, their consequences and how to avoid them
7. OPOS meets planning: How to plan your Cash position
8. FAQs

The meaning of OPOS - definition & explanation

Many entrepreneurs are familiar with the situation: a glance at online banking shows that there is less money in the account than expected. The accounting department quickly reveals the reason for this: Some customers have not yet paid their outstanding invoices.

• OPOS = open items - Invoices from suppliers or customers that have not yet been paid.

In accounting, open items are defined as all invoices that have not yet been paid in full. This can be the case on the expenditure side, if a company still has outstanding liabilities to suppliers, as well as on the income side, if customer invoices are still outstanding. In essence, these are all incoming and outgoing invoices for which the payment process has not yet been completed. You can think of them as a kind of "stopover" in the financial flow: The money is either already on its way to the recipient or is still expected but has not yet finally arrived. Open items therefore act as an interface between traditional, retrospective accounting and forward-looking Cash flow planning.

In practice, OPOS means that cash flows become traceable and controllable. This is why they are important for both small and large companies when it comes to securing the Cash position .

What is an OPOS list?

This is an overview in which all outstanding items/invoices are listed in detail. It helps to ensure that no outstanding receivables are overlooked and that reminders and payment targets are managed precisely.

Important for the meaning of OPOSThe OPOS list differs fundamentally from the general accounting, as the bookkeeping represents all the figures of a company. Or to put it more precisely: it is a separate statement of postings that have not yet been cleared within the accounting system and is managed in a more differentiated way than the pure totals/balance overview.

By the way: Difference between accounts receivable OPOS and accounts payable OPOS

Debit-side OPOS = On the one hand, there are the items on vendor or supplier accounts. They show unpaid invoices from suppliers or service providers. As soon as the payment is made and posted, the item automatically disappears from the list. How long it remains there depends on the agreed payment terms. This can be a few days, but sometimes months, for example in the case of security retentions in construction or project contracts.

Creditor OPOS = On the other hand, there are the items on debtor or customer accounts. Invoices issued to customers that have not yet been paid are recorded here. As soon as the money is received and the payment is posted in accounting, this item is also marked as completed.

Open item accounting: example with table

To emphasize the meaning of OPOS better, the following example will help. It explains all the important fields and terminology. A table then illustrates the whole thing.

OPOS list: Explanation of all fields and terms

• Invoice/receipt number: For clear correspondence and traceability
• Customer data: Company/customer name, address, contact person if applicable
• Invoice date: Decisive for the deadlines
• Amount outstanding: (net/gross) for the liquidity effect
• Payment target: Due date for controlling the dunning date
• Status: (open/partially paid/paid)
• Ageing/delay days: Risk assessment & prioritization
• Reminder level: To check the previous reminders
• Further information and notes: For transparency within the team

Example table:

The following example shows you how to read and understand the individual fields of an OPOS list correctly. This will show you the meaning of the OPOS and, above all, their importance in practice.

As can be seen here, the list includes not only payments that are already overdue, but also outstanding receivables that are still within the payment period. It also makes sense to keep two different lists depending on the type (customer or vendor).

It also creates clarity, prevents duplicate entries and helps you set priorities. Incidentally, it is even more efficient if you use COMMITLY. This is because it automatically displays all open items are automatically displayed in real time - including incoming payments, due dates and liquidity insight. The true importance of OPOS is not only recognized when there is a sudden bottleneck, but also when the Cash position needs to be managed proactively rather than reactively.

OPOS as a decisive lever for your company and Cash position

OPOS creates transparency about which payments are still outstanding - both for receivables (debtors) and payables (creditors). This makes it possible to see at any time when money is received and when expenses are due.

And what does all this have to do with the Cash position ? Quite simply! OPOS allows you to recognize early gaps (deviations & financial gaps) and take appropriate countermeasures if, for example, high outgoing payments are imminent before high incoming payments.

The importance of OPOS in terms of securing & optimizing the Cash position:

• Prioritization of items: The largest and oldest receivables are placed right at the front. In addition, creditors are planned in this way in order to take advantage of discounts and avoid bottlenecks.
• Manage payment targets: Ideally match and negotiate realistic customer payments & advantageous supplier payments.
• Professional dunning system: Overview of all stages and deadlines - ensures order and faster cash-ins.
• Time categories: Buckets in days show where the risk is increasing and where targeted action should be taken:
  • 0 - 30 days: Still within limits, prepare reminder
  • 31 - 60 days: Slightly overdue, send a friendly reminder and offer to negotiate
  • 61 - 90 days: Clearly overdue, further dunning levels until escalation
  • over 90 days: Critical, debt collection & legal action
• Benefit & urgency: Reduction of wastage and strengthening of the ability to act.

Our tip: Before the Cash position falls and cash becomes scarce, it is better to check OPOS regularly, assess their significance for solvency and act accordingly. With COMMITLY, you can ensure that all information runs automatically. This means that bottlenecks are visible at an early stage and you can take the appropriate measures in good time.

Tips for the correct implementation of OPOS: How to implement your list efficiently

The fact is: An OPOS list is only as good as its maintenance. We already know what belongs in such a list and the meaning of the individual OPOS terms. Now let's take a look at how the list is managed reliably and efficiently. Because only those who maintain OPOS regularly and in a structured manner will retain control and secure their Cash position. Below you will find some tips for implementation and their meaning in relation to OPOS:

• Checking interval: Depending on the scope of the list and the size of the company, check at least once a week, for example, in order to cash flow and dunning runs active.
• Automatic assignment: Incoming or outgoing payments are automatically assigned to the receipts in the system. This saves time and errors.
• Regulate responsibilities: Who regularly tracks the receivables and releases payments?
• Prioritize: Process the largest and oldest items first.
• Structured dunning process: Create templates for all levels and define fixed intervals and tonality.
• Documentation: If there are several employees on an OPOS list, record all notes, telephone calls and dunning levels directly in the overview.

The importance of OPOS in practice: common mistakes, their consequences and how to avoid them

At first glance, the open items list looks rather sober. But if it is neglected or managed incorrectly, this can have serious financial consequences. That's why we show you common mistakes, stumbling blocks and tips on how to avoid them:

• Incorrect master data: Payments are not made or are returned. Therefore: Maintain and check master data regularly.
• No planned rhythm: Reminders are sent out too late, incoming payments are delayed. A regular routine such as a weekly check can help here.
• Poor/manual payment reconciliation: Items remain open although already paid, reports are inaccurate and incomplete. It is better to carry out a regular reconciliation with the bank, preferably automated.
• Discounts are ignored: This increases costs unnecessarily. In this case, a due date calendar and prioritization of cash-out is helpful.
• Incorrect responsibilities in the team: No permanently scheduled employees for monitoring and dunning. A precise assignment of roles is therefore necessary.
• Frequent rear-view mirror view: Those who only look at past invoices when it comes to OPOS often notice bottlenecks too late. It is therefore better to also plan for future items that are due.

Remember: Only those who understand the importance of OPOS seriously will reduce conflicts and protect your cash flow. This will have a positive impact in the long term.

OPOS meets planning: How to plan your Cash position

Without a close look at the open items, cash flow quickly becomes a gut decision. With a well-managed OPOS list, you can visualize open amounts and dates and learn more about your cash flow through forward-looking Cash flow planningwhat may happen in the next 3, 6 or 9 months. With COMMITLY, the importance and significance of OPOS is clear. From now on, you can turn open items into tangible decisions.

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FAQs

• What does OPOS mean in accounting?
  OPOS stands for open items - i.e. all invoices of a company that have not yet been settled. This includes both open receivables from customers (debtors) and open liabilities to suppliers (creditors).
• What does clearing mean?
  Clearing means offsetting an open invoice against the corresponding payment. The item is only marked as settled and removed from the open items list once this comparison has been made. This process is important in order to have an up-to-date overview of receivables and payables at all times.
• What is an open items list needed for?
  The OPOS list provides a transparent overview of all unpaid invoices, due dates and dunning levels. It helps to keep an eye on outstanding amounts and actively manage incoming and outgoing payments.
• What significance do OPOS have for the Cash position?
  Open items show at an early stage when money is coming in or going out and where bottlenecks are imminent. This makes it possible to identify liquidity gaps, take advantage of cash discounts and prioritize payments correctly.
• What is the difference between accounts receivable and accounts payable OPOS?
  Accounts receivable OPOS: Outstanding receivables from customers who have not yet paid.
  Accounts payable OPOS: Outstanding payables to suppliers that have yet to be settled.
  Both lists together provide a complete picture of a company's payment flows.

What is the significance of OPOS in general accounting? How do they differ?
Bookkeeping shows all business transactions, while open items only show the items that are still open - i.e. not cleared. This makes them a special control instrument for the payment status.