What is the consequence of choosing the option 'Payment on Account' in the Outgoing Payments window?

When selecting the 'Payment on Account' option in the Outgoing Payments window, the open invoice will not be reconciled with the payment. This functionality allows for payments to be recorded without being directly applied to a specific invoice, providing flexibility in managing vendor payments.

By utilizing this option, businesses can maintain a balance on the vendor account, where the payment is acknowledged but not allocated to any particular outstanding invoice. This can be particularly useful in scenarios where the business wants to keep a record of payments made without affecting the reconciliation of existing invoices.

In contrast, options that imply automatic application or closure of invoices would not hold true for 'Payment on Account', as this option is specifically designed to facilitate payments that do not directly reconcile with open invoices.