3 Questions
What is the status of an invoice when a customer pays for it?
Open
What is the purpose of voiding an invoice?
To make it zero-value for reporting purposes
When can an invoice be voided?
When it is open
Study Notes
- An invoice goes through five statuses: draft, open, paid, voided, and uncollectible.
- You can finalize an invoice, mark it as paid, or void it.
- When a customer pays for an invoice, the invoice moves into the paid status.
- Voided invoices are treated as zero-value for reporting purposes.
- You can only void invoices when they’re open or uncollectible.
- Uncollectible invoices are written off.
Test your knowledge about different statuses of an invoice, and the actions that can be taken to change its status, from draft to open, paid, voided, or uncollectible. Explore the implications of these statuses on reporting and the handling of unpaid invoices.
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