What defines an unsettled invoice item?

An unsettled invoice item is defined as an invoice item that has not been fully paid. This means that there is still an outstanding balance associated with that specific item on the invoice, which indicates that the payment process is incomplete. Such items are critical for tracking financial obligations, as they represent amounts that are still owed and need to be collected.

In this context, the other options do not accurately describe unsettled invoice items. For instance, an item that has been partially paid would still be viewed as unsettled, but the correct definition focuses explicitly on the fact that it has not been fully resolved financially. An invoice that has been fully paid clearly signifies that there is no outstanding balance, thus disqualifying it from being considered unsettled. Additionally, an invoice item pending approval relates more to the administrative processes surrounding payment authorization rather than the financial status of payment fulfillment.