Open item processing allows you to allocate (match / link) each debit transaction to a credit transaction and each credit transaction to a debit transaction; which are posted to the same account. 

Basically most or all receipts or payments transactions, should be matched when processing transactions in batches. When allocating transactions to an account, which is set as an Open item account, an "Open item selection" screen will list all the transactions with outstanding amounts. You may then select a specific outstanding transaction on a list to link the transaction to. The basics for debtor (customer / client) accounts and creditor (supplier / vendor) accounts, which is set as "Open item account", is as follows:

Debtor (customer / client) accounts - By default, the "Open item selection" screen will be launched when allocating credit transactions (e.g. payments received or credit notes, etc.) to debit transactions (e.g. Invoices, Credit notes, and other debit transactions such as interest on overdue accounts, etc.)   

Creditor (supplier / vendor) accounts - By default, the "Open item selection" screen will be launched when allocating debit transactions (e.g. payments on account or supplier returns, etc.) to credit transactions (e.g. Purchases, and other debit transactions such as charge amounts, interest charged on overdue accounts, etc.).    

There are various options to filter and manage the details, totals and transactions of open item accounts. To access the Open item link feature, click on the Open item link icon (Action ribbon).

There are three (3) tabs, i.e.  Totals, Transactions and Unposted batches to manage open item accounts.

open-item-link-totals-tab

TurboCASH stores two amounts for transactions to open item accounts; the amount of the transaction as well as an "outstanding amount". 

When you process the receipts journal and enter the amount for an Open item debtor, the “Open item selection” screen will be displayed, where you may select to link a receipt to a specific transaction or outstanding amount. 

When you process the payments journal, and enter the amount for an Open item creditor (supplier / vendor) account, the “Open item selection” screen will be displayed, where you may select to link a payment to a specific transaction or outstanding amount. 

You may also edit or unlink the existing links, or even convert a specific account to the “Balance brought forward” method, where any payment or receipt will be set off against the oldest outstanding amount.