Customer statements - open item versus balance forward

I am trying to understand how customer statements work for PeopleSoft AR. We want to use Balance Forward statements. The only way I can get the system to create the Balance Forward statement is if I set up the Customer with a statement ID of BALF. (A statement ID I created that is type = Balance Forward). This customer setup was done on the Correspondence Options page. So am I correct in understanding that a customer can either have an Open Item statement or a Balance Forward statement, but not both?