Debitoor Dictionary

Accounting terms explained in a simple way

Over 150 Articles for Founders and Entrepreneurs

  1. Creditor
  2. Balance sheet
  3. VAT
  4. Exchange gain or loss
  5. Invoice

Open items: creditor - What are open items: creditor?

Open items on the creditor side are any supplier invoices that have yet to be paid and can also include any supplier payments posted to the supplier ledger card, but not matched against the supplier invoices

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Open items can occur in both the sales and expenses side of your business. When an open item is on the creditor side, this means that there are open supplier invoices that have yet to be paid. For information about the debtor side, see open items: debtor.

Open items: creditor in accounting

An open item on the creditor side in accounting means that the expense or invoice from a supplier is still open and payment has not yet been made, meaning that the amount remains ‘open’ and is expected to be settled at a later date.

When you run an aged creditor report, it will show all invoices that are unpaid at that date along with any supplier payments that have not been matched with the invoice. This report should be a mirror image of the Creditor Control Account in the balance sheet.

Clearing unmatched supplier payments

It is important to clear any unmatched supplier payments especially if you are using the Cash Accounting VAT Scheme as this is the trigger for determining the VAT calculations for your VAT return.

If you have processed a supplier invoice in a currency different from that of the base currency for your account (please note that the supplier payment must also be processed in the same currency as your supplier invoice) matching the invoice to the receipt in some accounting software automatically generates the exchange gain or loss and posts the amount.

Open items and accounting software

Online accounting & invoicing software give you tools to add expenses and register payments to suppliers even while out and about, all from your smartphone. Keep track of which suppliers your business owes and when payments are made easily with Debitoor.