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Questions and Answers
What does it mean to void an invoice?
What does it mean to void an invoice?
- To delete the invoice
- To make the invoice editable
- To make the invoice uncollectible
- To keep a paper trail (correct)
What is the first step in the invoice process?
What is the first step in the invoice process?
- Open
- Paid
- Voided
- Draft (correct)
What happens when a customer pays for an invoice?
What happens when a customer pays for an invoice?
- The invoice is voided
- The invoice is deleted
- The invoice moves to the paid status (correct)
- The invoice is marked as uncollectible
Study Notes
- An invoice goes through five statuses: draft, open, paid, voided, and uncollectible.
- Draft invoices are still editable, but are unsent.
- When a customer pays for an invoice, the invoice moves into the paid status.
- Voided invoices are conceptually similar to deleting (canceling) them, but maintain a paper trail.
- Uncollectible invoices are sometimes in this state.
- You can mark an invoice as paid, void, or uncollectible.
- You can delete a draft invoice at any time.
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Description
Test your knowledge about the lifecycle of an invoice, including its various statuses such as draft, open, paid, voided, and uncollectible. Understand when and how an invoice transitions between these statuses and the actions that can be taken for each status.
