Invoice Status Quiz

• Invoices move through different statuses from the time they’re created to when they’re paid.
• Draft invoices are still editable, but are not sent or paid.
• 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) an invoice, but maintain a paper trail.
• Uncollectible invoices are sometimes created when a customer is unlikely to pay an outstanding bill.
• You can mark an invoice as uncollectible, which allows you to track the amount owed for reporting purposes.

Test your knowledge about the lifecycle of invoices and their different statuses, from draft to open, paid, voided, and uncollectible. Understand the implications and actions associated with each status.