3 Questions
What happens to paid invoices?
They take on another status
What is the purpose of voiding an invoice?
To maintain a paper trail
How many statuses does an invoice move through?
Five
Study Notes
- An invoice moves through five statuses: draft, open, paid, voided, and uncollectible.
- You can finalize an invoice, or delete it.
- Paid invoices are terminal and 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 treated as zero-value for reporting purposes.
Test your knowledge on the lifecycle of an invoice, including its statuses, finalization, and deletion. Learn about the implications of different statuses such as paid, voided, and uncollectible on the invoice's handling and reporting.
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