You have the following options:

• If you choose None, the records will not be settled.

• If you choose Open transactions, the entries will automatically be settled with open transactions according to the FIFOprinciple.

• The settlement type automatically changes to manual settlement if you decide to settle the records manually via the menu item Setup> Open transaction editing. When entering purchase invoices, you can thus balance the purchase invoice against previously entered or open on-account payments or credit notes; you also can balance a credit note against one or more purchase invoices.