3 Questions
What is the terminal status of an invoice?
Open
How can you maintain an invoice paper trail?
Mark it as void
What action can you take on a draft invoice?
Delete it
Study Notes
- An invoice moves through different statuses from the time it’s created to when it’s paid.
- Draft invoices are still editable and remain unsent.
- Open invoices and paid invoices are terminal, which means that they can never take on another status.
- Voided invoices are conceptually similar to deleting (canceling) them. However, voiding an invoice maintains a paper trail, which allows you to look up the invoice by number.
- Uncollectible invoices are sometimes your customers won’t be able to pay their outstanding bills.
- You can mark an invoice as paid, void, or uncollectible.
- You can delete a draft invoice at any time.
Test your knowledge of invoice statuses with this quiz. Learn about different invoice statuses such as draft, open, paid, voided, and uncollectible, and understand the actions that can be taken for each status.
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