osFinancials allows two basic methods of age processing Ledger, Debtor and Creditor transactions. These age type processing methods are:

  • Balance brought forward -
    • Debtor (customer) accounts - The credit transactions (payments received, debtor allowances, credit notes or any other credit transaction) are allocated to the oldest outstanding debit transaction (opening balances, invoices, etc.) amount.
    • Creditor (supplier / vendor) accounts - The debit transactions (payments made to creditors, creditor allowances or supplier returns documents or any other debit transaction) are allocated to the oldest outstanding credit transaction (opening balances, purchases, etc.) amount.
  • Open item -
    • Debtor (customer) accounts - Open item is by default not activated. To activate Open item processing for a debtor (customer / client) account, select (tick) the “Open item” field on the Accounting information tab of a selected debtor (customer / client) account.  

The credit transactions (payments received, debtor allowances, credit notes or any other credit transaction) may be linked to any selected outstanding debit transaction (opening balances, invoices, etc.) amount. 

    • Creditor (supplier / vendor) accounts - Open item is by default not activated. To activate Open item processing for a  creditor (supplier / vendor) account, select (tick) the “Open item” field on the Accounting information tab of a selected creditor (supplier / vendor) account.  

The debit transactions (payments made to creditors, creditor allowances or supplier return documents or any other debit transaction) may be linked to any selected outstanding credit transaction (opening balances, purchases, etc.) amount. 

    • General ledger accounts - Accounts (Setup ribbon) Open item account field – Default is No. You may set it to Yes. 

The Open item account option is not available for the Retained earnings / income, Debtor's control and Creditor's control accounts. 

Open item processing of ledger accounts, may be useful for suspense accounts, clearing accounts, advance accounts for subsistence and travel, etc. 

You may link debit transactions to credit transactions or credit transactions to debit transactions.