Balance Forward Customers vs. Open Item Customers

14/10/2018

Balance Forward Customers vs. Open Item Customers

	Open Item (Knock Off Basis)	Balance Forward (Without Knock Off)
Definition	Individual transaction information is saved and detailed on customer statements until the transaction is removed through paid transaction removal.	Transaction information is retained only for the current period and is then consolidated into an account total that is brought forward at the beginning of each subsequent period.
Number of aging periods	You can use up to seven againg periods.	There are only two aging periods, current and noncurrent.
Finance Charge	Accounts are aged before assessing finance charges because open item accounts are aged by individual transaction dates.	Accounts are consolidated after finance charges are assessed and statements have been printed because balance forward accounts don’t retain individual transaction information.
Aging	Open item aging can be done at any time of the month by initiating the aging process.	Balance forward consolidation occurs during the paid transaction removal procedure.
Cash receipts/posted transactions	Payments can be applied to specific invoices. You will be able to waive finance charges, assess charges for non-sufficient funds (NSF) checks and void transactions until you’ve completed the paid transaction removal procedure.	Payments are applied automatically to the current balance. You will be able to waive finance charges, assess charges for non-sufficient funds (NSF) checks and void transactions until you’ve consolidated the accounts during the paid transaction removal procedure.
Multicurrency transactions	Multicurrency transactions can be entered for open item customers.	Multicurrency transactions can’t be entered for balance forward customers.