Final answer:
The correct setting to maintain for a vendor who is also a customer to clear open items by a payment program is the account link. The check serves as a payment instrument for goods and services, and the store receives funds by depositing it into their account. An overdraft happens when the account balance falls below zero.
Step-by-step explanation:
In order for a vendor who is also a customer to have their open items cleared by a payment program, a specific setting related to the business partner must be maintained. The setting that allows this dual relationship to be managed effectively is the account link. This ensures that when transactions occur, the payment program can recognize the linkage between the accounts receivable and payable, enabling it to clear off the open items. It is not necessarily to have the same payment method or bank details, nor to set up as an alternative payer or payee.
When a business uses a check to pay for goods and services, the check acts as a written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee. The store gets the money when it deposits the check into its bank account, and the bank processes the check and transfers funds from the payer's account to the payee's account. An overdraft occurs when a person's bank account balance goes below zero, indicating that they have spent more money than what was available in their account.