Balance forward. A customer with an account type of Balance Forward pays by statement balance rather than by individual invoice. The customer statement shows current period transactions in detail. Aging receivables for the customer deletes the transaction detail and carries forward the account balance, which is the accumulation of all invoices, payments, and adjustments to the account. Customer payments are applied to the total balance due, beginning with the balance in the oldest aging period.

Open item. A customer with an account type of Open Item pays by individual invoice rather than by balance due. Each customer invoice you enter persists in the system until paid in full. You specify the invoice(s) to which to apply a customer payment or apply the payment to all invoices. The payment is applied to finance charges first and then to open invoices, beginning with the oldest invoice.

Revolving. A Revolving charge account customer is a balance-forward type customer who must make a minimum payment each period. The customer must pay at least the minimum dollar amount that you specify later in this window. You can use either the level method or the average daily balance method to calculate finance charges on revolving charge accounts.

Fixed. A Fixed Payment customer is a balance forward-type customer who pays a fixed dollar amount each period until the balance is paid in full. Finance charges for Fixed Payment customers are assessed on the customer's outstanding balance minus current period activity and outstanding finance charges. You specify the fixed payment amount later in this window.