How can I use transaction types to review and update customer balances?

Use the Open Receivable option on the transaction type to implement an approval cycle for any temporary or preliminary transactions.

For example, if you have particularly sensitive debit memos, credit memos, on-account credits, chargebacks, or invoices that you want to review after creation, you can define a transaction type called Preliminary with Open Receivable set to No and assign it to the applicable transactions. This transaction type doesn't update your customer balances.

Once you review and approve these transactions, you can define a transaction type called Final with Open Receivable set to Yes and assign it to the same transactions. This will now update your customer balances on these transactions.