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Questions and Answers
What is the status of an invoice when a customer pays for it?
What is the status of an invoice when a customer pays for it?
- Draft
- Open (correct)
- Voided
- Uncollectible
What is the purpose of voiding an invoice?
What is the purpose of voiding an invoice?
- To finalize the invoice
- To mark it as paid
- To make it zero-value for reporting purposes (correct)
- To write it off
When can an invoice be voided?
When can an invoice be voided?
- When it is draft
- When it is open (correct)
- When it is paid
- When it is uncollectible
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.
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Description
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.
