Invoice Lifecycle

Understanding the invoice lifecycle helps you manage your billing efficiently. This guide explains each status and how invoices flow through the system.

Invoice Status Overview

┌─────────┐    ┌───────────┐    ┌──────┐    ┌──────┐
│  DRAFT  │ → │ FINALIZED │ → │ SENT │ → │ PAID │
└─────────┘    └───────────┘    └──────┘    └──────┘
                     │
                     ↓
               ┌──────────┐
               │  VOID    │
               └──────────┘
                     │
                     ↓
               ┌──────────┐
               │ CREDITED │
               └──────────┘

Status Definitions

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Draft Stage

When you create a new invoice, it starts as a Draft.

What You Can Do:

• Edit all fields (customer, items, amounts)
• Add or remove line items
• Change dates and terms
• Delete the invoice entirely
• Preview the PDF

What's Not Done Yet:

• No invoice number assigned
• Not visible to customer
• Not counted in reports
• Cannot be sent

Tip: Keep invoices as drafts until you're 100% sure they're correct.

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Finalized Stage

When you're ready, click "Finalize" to lock the invoice.

What Happens:

• Invoice number is assigned (e.g., FAC-2024-0001)
• Invoice is locked - amounts cannot change
• Invoice appears in reports
• Ready to send to customer

What You Can Do:

• Send to customer
• Download PDF
• Mark as paid (if they paid directly)
• Void the invoice
• View and share

What You Cannot Do:

• Edit amounts or items
• Change customer
• Delete the invoice

Warning: Finalizing is irreversible. Double-check before finalizing!

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Sent Stage

After sending via email, the status becomes Sent.

What Happens:

• Email delivered to customer
• "Sent at" timestamp recorded
• Customer can view the invoice

Sending Options:

1. Email: Click "Send" to email the PDF
2. Share Link: Generate a link to share
3. Download: Give customer the PDF directly

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Paid Stage

When the customer pays, mark the invoice as Paid.

How to Mark as Paid:

1. Open the invoice
2. Click "Mark as Paid"
3. Enter payment details:
   • Payment date
   • Payment method (optional)
   • Reference number (optional)
4. Confirm

What Happens:

• Status changes to "Paid"
• Shows in revenue reports
• "Paid at" timestamp recorded
• Green checkmark displayed

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Void Stage

If an invoice needs to be cancelled, you can Void it.

When to Void:

• Invoice created in error
• Customer cancelled the order
• Duplicate invoice

How to Void:

1. Open the invoice
2. Click "Actions" > "Void Invoice"
3. Enter a reason (required)
4. Confirm

What Happens:

• Status changes to "Void"
• Strikethrough appearance
• Excluded from revenue reports
• Invoice number is preserved (for audit)

Note: For corrections (wrong amount, wrong customer), use a Credit Note instead.

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Credited Stage

When a credit note is issued against an invoice, it becomes Credited.

When This Happens:

• You issue a credit note for the invoice
• The credit note is finalized
• Original invoice status updates automatically

Learn More:

• Credit Notes Guide

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Status Badges

In the invoice list, you'll see color-coded badges:

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Best Practices

1. Review Before Finalizing: Once finalized, you cannot edit amounts
2. Use Drafts Freely: Create drafts to prepare invoices ahead of time
3. Send Promptly: Send invoices as soon as they're finalized
4. Mark Payments Quickly: Keep your records up to date
5. Never Delete for Corrections: Void or credit instead

Common Questions

Can I un-finalize an invoice? No. Create a credit note if you need to make corrections.

What if customer never pays? The invoice stays as "Sent" or "Overdue". You can void it or write it off.

Can I re-send an invoice? Yes, you can send the same invoice multiple times.

Next Steps

• Create credit notes
• Set up payment reminders
• View reports